The official research team at Glassnode recommends keeping an eye on this metric — BTC Realized Profit/Loss Ratio (90-day moving average). Since it uses a large-scale smoothing parameter, the metric becomes less sensitive and won’t be affected by data from a single day. However, once a trend forms, it also won’t change or reverse in the short term. The Realized Profit/Loss Ratio measures the average realized profit for every $1 of loss, reflecting capital flow dynamics. That’s why the official team uses it as an indicator of market liquidity. When it drops below 1 (red zone), it indicates that realized losses are starting to dominate. The market has completely lost profitability, and capital flow is severely restricted. Looking at historical data, bear market bottoms often occur after the metric enters the red zone. In other words, by the time it reaches this point, the market has already experienced most of the decline — it’s just waiting for the “final shakeout.” At the same time, once it enters the red zone, it’s impossible to exit it immediately in the short term. In past cycles, it has taken as long as 12 months or as short as 8 months. However, once the metric climbs back above 1 (green zone), it signals the end of the bear market. This is also the last chance to accumulate on the right side before the bull market begins. So, from a trading perspective, there’s no need to worry about missing out. Even if you don’t catch the absolute bottom, there’s still an opportunity to get in on the right side. Over a longer time frame, when looking back from the next market top, the profit margin won’t be significantly affected, and the certainty will be much higher. #Glassnode #BTC #Crypto #TradingTips #MarketAnalysis