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PNL-P | PNL-L / Profit and Loss

Profit and Loss	PNL-P
Profit and Loss	PNL-L

INTERVALS
Tier 1:  1M, 1W, 3D, 1D	
Tier 2:  1M, 1W, 3D, 1D, 12h, 4h, 2h, 1h, 15m, 10m, 5m, 1m	
Tier 3:  1M, 1W, 3D, 1D, 12h, 4h, 2h, 1h, 15m, 10m, 5m, 1m

Indicators: Supply in Profit and Supply in Loss

What is it?

The indicators Supply in Profit (PNL-P) and Supply in Loss (PNL-L) allow you to understand what portion of the total Bitcoin supply is currently in profit or loss.

Supply in Profit (PNL-P)

Percentage of supply in profit = (Supply in profit / Total supply) * 100

ProsHigh PNL-P suggests that the majority of investors are currently in profitMay indicate favorable moments to take profits

WarningsToo high PNL-L may signal an overheated market and a potential correctionBe cautious of false signals and analyze in a broader market context

Delays in on-chain data metrics in exceptional circumstances can reach up to 40 minutes. Due to the structure of the Bitcoin blockchain, delays in these metrics typically range around 20 minutes.

Supply in Loss (PNL-L)

Percentage of supply in loss = (Supply in loss / Total supply) * 100

ProsHigh PNL-L can indicate potentially attractive Bitcoin purchase pricesMay signal moments to take long positions

WarningsHigh PNL-L in combination with other negative market factors may indicate a prolonged bearish trendIt's essential to analyze SIL along with other market indicators and fundamentals

Chart 1: Supply in Profit (PNL-P)

The PNL-P chart shows the percentage of Bitcoin supply that is in profit. Higher values on the chart suggest that a larger portion of the market is in profit. This can be a signal to consider taking profits, especially when the market appears to be overheated.

Chart 2: Supply in Loss (SPNL-LIL)

The SIL chart depicts the percentage of Bitcoin supply that is currently in loss. Higher values may indicate good buying opportunities as many positions are in the red, and the market may be undervalued. However, be cautious of further negative trends that could lead to more declines.

Updated on: 07/03/2024

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