Value

when

<h4>The current crypt market is choppy. The price action’s like a rollercoaster with constant ups and downs. Are we still in a bull market? An old slogan says to ‘zoom out when in doubt’. However, other vital metrics can help you. It’s important to be aware of when crypto trend reversals take place.</h4> 
So, we have found some metrics that can help you identify these crypto trend reversals. 
<h5>The Bitcoin Difficulty Ribbon</h5> 
The Bitcoin Difficulty Ribbon is a metric that shows the difficulty of Bitcoin mining. It uses simple moving averages to determine this difficulty. For example, the 200-, 128-, 90-, 60-, 40-, 25-, or 14-day moving average. Willy Woo came up with this indicator. It dates back to 2019. 
The idea behind this ribbon is that it can tell you when it’s the best time to buy $BTC. The best time to buy $BTC is when the ribbon compresses or flips negatively. This article by <a href="https://woobull.com/introducing-the-difficulty-ribbon-the-best-times-to-buy-bitcoin/" target="_blank" rel="noopener">Willy Woo</a> gives you a deeper understanding of how this indicator works. See the chart below. 
<img decoding="async" class="aligncenter wp-image-148092 size-large" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_-1024x463.png" alt="Crypto trend reversals" width="696" height="315" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_-1024x463.png 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_-300x136.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_-768x348.png 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_-1536x695.png 1536w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_-928x420.png 928w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_-696x315.png 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_-1068x483.png 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-516-Bitcoin-MVRV-Ratio-_-Woobull-Charts-charts.woobull.com_.png 1920w" sizes="(max-width: 696px) 100vw, 696px">Source: <a href="https://studio.glassnode.com/metrics?a=BTC&amp;m=indicators.DifficultyRibbon" target="_blank" rel="noopener">Glassnode</a> 
<h5>The MVRV Ratio</h5> 
The MVRV ratio stands for the Market Value to Realized Value Ratio. In other words, it compares the market cap (market value) to its realized value. It indicates if a crypto token is under or overvalued. 
With this indicator, overvaluation is in the red zone. On the other hand, the green zone indicates undervaluation. So, the orange line going in the red zone, means $BTC is currently too expensive. However, once this orange line hits the green zone, it’s time to buy $BTC, according to this indicator. For more information, check <a href="https://medium.com/@kenoshaking/bitcoin-market-value-to-realized-value-mvrv-ratio-3ebc914dbaee" target="_blank" rel="noopener">this article</a> by one of its creators. 
<img decoding="async" class="aligncenter wp-image-148091 size-large" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-517-Stacy-Muur-on-X_-_@glassnode-2_-cut-e-MVRV-evaluates-whether-BTC-is-overvalued-or-undervalued-_-x.com_-1024x542.jpg" alt="Crypto trend reversals" width="696" height="368" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-517-Stacy-Muur-on-X_-_@glassnode-2_-cut-e-MVRV-evaluates-whether-BTC-is-overvalued-or-undervalued-_-x.com_-1024x542.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-517-Stacy-Muur-on-X_-_@glassnode-2_-cut-e-MVRV-evaluates-whether-BTC-is-overvalued-or-undervalued-_-x.com_-300x159.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-517-Stacy-Muur-on-X_-_@glassnode-2_-cut-e-MVRV-evaluates-whether-BTC-is-overvalued-or-undervalued-_-x.com_-768x407.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-517-Stacy-Muur-on-X_-_@glassnode-2_-cut-e-MVRV-evaluates-whether-BTC-is-overvalued-or-undervalued-_-x.com_-793x420.jpg 793w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-517-Stacy-Muur-on-X_-_@glassnode-2_-cut-e-MVRV-evaluates-whether-BTC-is-overvalued-or-undervalued-_-x.com_-696x369.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-517-Stacy-Muur-on-X_-_@glassnode-2_-cut-e-MVRV-evaluates-whether-BTC-is-overvalued-or-undervalued-_-x.com_-1068x566.jpg 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-517-Stacy-Muur-on-X_-_@glassnode-2_-cut-e-MVRV-evaluates-whether-BTC-is-overvalued-or-undervalued-_-x.com_.jpg 1478w" sizes="(max-width: 696px) 100vw, 696px"> 
Source: <a href="https://x.com/stacy_muur/status/1821834678426538369" target="_blank" rel="noopener">X</a> 
<h5>Percent Supply in Profit</h5> 
The percent supply in profit is what it says. It measures the percentage of the circulating supply that is in profit. In other words, the last price change of the coin you follow was below the current price. 
This measurement dates back to November 2019. <a href="https://academy.glassnode.com/supply/profit-loss-supply/percent-supply-in-profit" target="_blank" rel="noopener">Glassnode</a> introduced it. If values read 95% or higher, it indicates the top. Values below 5% mean that the bottom is there. The current $BTC supply in profit is around 80%. During a market rally, this percentage will go up. However, during a correction, this percentage should go down. See the chart below. 
<img decoding="async" class="aligncenter wp-image-148090 size-large" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_-1024x713.png" alt="Crypto trend reversals" width="696" height="485" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_-1024x713.png 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_-300x209.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_-768x534.png 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_-604x420.png 604w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_-696x484.png 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_-1068x743.png 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_-100x70.png 100w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-518-Bitcoin-Percent-Supply-in-Profit-Chart-I-Newhedge-newhedge.io_.png 1519w" sizes="(max-width: 696px) 100vw, 696px"> 
Source: <a href="https://newhedge.io/terminal/bitcoin/percent-supply-in-profit" target="_blank" rel="noopener">New Hedge</a> 
<h5>Bitcoin Spot ETF Flow Chart</h5> 
The Bitcoin spot ETF flow chart keeps track of the in and outflows of $BTC spot ETFs. It estimates the daily net flow of funds within the top ten US-traded <a href="https://www.altcoinbuzz.io/?s=bitcoin+etfs" target="_blank" rel="noopener">Bitcoin ETFs</a>. Currently, the SEC approved 11 $BTC spot ETF funds. They started trading on 11th January 2024. 
There’s also an Ethereum spot ETF <a href="https://www.theblock.co/data/crypto-markets/ethereum-etf" target="_blank" rel="noopener">flow chart</a>. It works in the same way but for Ethereum spot ETFs. These started trading on 23rd July 2024. The SEC approved 8 <a href="https://www.altcoinbuzz.io/?s=ethereum+etfs" target="_blank" rel="noopener">$ETH spot ETFs</a>. Rumors are that the next spot ETF in line could be Solana. See <a href="https://youtu.be/TKibOYV87DE?si=ukNdZU3coF_RenWH" target="_blank" rel="noopener">our video</a> about this. 
<img decoding="async" class="aligncenter wp-image-148089 size-large" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_-1024x372.png" alt="Crypto trend reversals" width="696" height="253" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_-1024x372.png 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_-300x109.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_-768x279.png 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_-1536x558.png 1536w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_-1156x420.png 1156w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_-696x253.png 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_-1068x388.png 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-519-Spot-Bitcoin-ETF-Flows-Daily-Chart_-BlackRock-Fidelity-and-More-www.theblock.co_.png 1718w" sizes="(max-width: 696px) 100vw, 696px"> 
Source: <a href="https://www.theblock.co/data/crypto-markets/bitcoin-etf/spot-bitcoin-etf-flows" target="_blank" rel="noopener">The Block</a> 
<h5>Number of Addresses Holding 1K $BTC or More</h5> 
A chart showing the number of addresses holding 1K $BTC or more shows <a href="https://www.altcoinbuzz.io/?s=bitcoin" target="_blank" rel="noopener">Bitcoin</a> whales. These are all unique addresses. This chart shows when whales are selling or when they are accumulating.&nbsp; 
Their buying and selling behavior can influence the market. In general, prices go up when they buy $BTC. On the other hand, when they sell $BTC, the $BTC price may drop. So, being on top of crypto whales can help you understand crypto trend reversals. The chart below shows the whales with more than 1k $BTC and the $BTC price. 
<img decoding="async" class="aligncenter wp-image-148088 size-large" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-520-BTC-Number-of-Addresses-with-Balance-≥-1k-BTC-ChianHubI-Data-On-Chain-I-coinank-coinank.com_-1024x476.png" alt="" width="696" height="324" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-520-BTC-Number-of-Addresses-with-Balance-≥-1k-BTC-ChianHubI-Data-On-Chain-I-coinank-coinank.com_-1024x476.png 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-520-BTC-Number-of-Addresses-with-Balance-≥-1k-BTC-ChianHubI-Data-On-Chain-I-coinank-coinank.com_-300x139.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-520-BTC-Number-of-Addresses-with-Balance-≥-1k-BTC-ChianHubI-Data-On-Chain-I-coinank-coinank.com_-768x357.png 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-520-BTC-Number-of-Addresses-with-Balance-≥-1k-BTC-ChianHubI-Data-On-Chain-I-coinank-coinank.com_-904x420.png 904w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-520-BTC-Number-of-Addresses-with-Balance-≥-1k-BTC-ChianHubI-Data-On-Chain-I-coinank-coinank.com_-696x323.png 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-520-BTC-Number-of-Addresses-with-Balance-≥-1k-BTC-ChianHubI-Data-On-Chain-I-coinank-coinank.com_-1068x496.png 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/FireShot-Pro-Webpage-Capture-520-BTC-Number-of-Addresses-with-Balance-≥-1k-BTC-ChianHubI-Data-On-Chain-I-coinank-coinank.com_.png 1518w" sizes="(max-width: 696px) 100vw, 696px"> 
Source: <a href="https://coinank.com/btcChainDate/BTCNumberofWhaleAddresses" target="_blank" rel="noopener">CoinAnk</a> 
<h5>Conclusion</h5> 
We showed five indicators that can help you with spotting crypto price reversals. They aim at mid- and long-term investments. These indicators give a realistic idea of market movements. 
<a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="alignnone wp-image-123700 size-full" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg" sizes="(max-width: 1197px) 100vw, 1197px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg 1197w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1068x132.jpg 1068w" alt="" width="1197" height="148"></a> 
<iframe title="Crypto Whales are making Massive moves 😮" width="696" height="392" src="https://www.youtube.com/embed/P2zTpZxw1oo?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe> 
Disclaimer 
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. 
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. 
Copyright Altcoin Buzz Pte Ltd. 
The post <a href="https://www.altcoinbuzz.io/reviews/key-metrics-to-monitor-for-detecting-crypto-trend-reversals/">Key Metrics to Monitor for Detecting Crypto Trend Reversals</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.

Key Metrics to Monitor for Detecting Crypto Trend Reversals

Altcoin Buzz

Other articles published on Aug 13, 2024

SEC Pushes Back Against Coinbase’s Demand for Gensler Emails on Digital Assets

Tether Co-founder Brock Pierce Faces Legal and Financial Turmoil in Puerto Rico

Pepe Price Prediction: PEPE Pumps 4% In A Week, But Investors Flock To This Layer-2 Meme Coin Off...

Grayscale Expands Crypto Offerings with Bittensor and Sui

Financial Leaders Urge Fed to Act

BlackRock’s Ethereum ETF Nears $1 Billion Milestone

Join our free newsletter for daily crypto updates!