This indicator compares the % change in BTC price and the % change in BTC’s active addresses (BTC’s utility value).
1. % changes in BTC price & active addresses - Orange line: BTC’s price change (%) - Gray line: BTC’s active address change (%) - Red/Yellow/Green lines: Bollinger bands for change in active address
2. Trend: - Green circles: Bullish Sentiment Trend Market sentiment is bullish and BTC price outgrows the increase in its utility value (overpricing) - Red circles: Bearish Sentiment Trend Market sentiment is bearish and BTC price drops more than the decrease in its utility value (underpricing)
3. Potential Re-Entries: - Green/Red triangles: potential bullish/bearish entries When % change of BTC price gets similar to that of active addresses
Which ticker do you use for BTC's active addresses?
Phi-Deltalytics
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For overbought/oversold conditions, use the active address momentum indicator: tradingview.com/script/KI8h2N33-BTC-Active-Address-Momentum-On-chain/ (Had a tough time fitting both momentum and trend information in one indicator and make both look clean enough. So created two instead.)