Margins are tightening (Bitcoin realized profits decreasing & realized losses increasing) The top indicator in the chart shows BTC price. The middle indicator in the chart shows Bitcoin realized profits (365-day MA) and Bitcoin realized losses (365-day MA). The bottom indicator in the chart shows the ratio of Bitcoin realized profits (365-day MA) to Bitcoin realized losses (365-day MA), also known as the 'Realized Profit-Loss Ratio (365-day MA).' This ratio reflects the overall profit and loss status of market participants by comparing the moving average of profits (portion where selling price is higher than buying price) and losses (portion where selling price is lower than buying price) realized by investors over the past 365 days. In bull markets, the profit-loss ratio is usually higher because investors tend to take profits at higher prices. In bear markets, the ratio is usually lower because investors may sell at a loss, reflecting market panic or capitulation behavior. Using the 365-day moving average smooths out short-term fluctuations and highlights long-term trends. This indicator is a powerful tool for assessing whether the market is overheated (high ratio) or overly fearful (low ratio) and for identifying market cycles and trends.