Original Title: "On-chain Data School (Part 3): Have the Bottom Fishing Whales Taken Profit Yet?"

Original Author: Mr. Whaleberg, On-chain Data Analyst

This article is the 3rd part of the On-chain Data School series, consisting of 10 parts in total. It will take you step by step through understanding on-chain data analysis. Interested readers are welcome to follow this series.

Related Reading: "On-chain Data School (Part 2): The Ever-profitable Hodlers, What Is Their BTC Acquisition Cost?"

TLDR  

- This article will focus on introducing the on-chain metric Realized Profit  

- Realized Profit shows the amount of profit taken off the market daily  

- Massive Realized Profit is usually generated by low-cost chip holders  

- Market tops are typically accompanied by significant Realized Profit  

Introduction to Realized Profit & Realized Loss  

Realized Profit, translated as "已实现利润," is based on the price of each BTC at its last transfer compared to the price at the previous transfer, calculating how much BTC is profitably realized each day. By summing up the total profit from these BTC realizations, the daily Realized Profit can be obtained.

Of course, if the price at the last transfer is lower than the price at the previous transfer, it will be counted as Realized Loss.

Realized Profit & Realized Loss Chart

Massive Realized Profit is Usually Generated by Low-Cost Chip Holders  

As shown in the diagram below: Due to the high-cost chip holders, their own profit margin is not large, so when they sell, the **Realized Profit** they can generate is not significant.

Therefore, when we see a huge amount of Realized Profit, it usually means that low-cost chips are selling off BTC.

Realized Profit Calculation Diagram

Tops are usually accompanied by a significant amount of Realized Profit  

When a large number of low-cost chip holders sell off their BTC, we will see clustered huge volume of realized profit on the chart.

At this point, since the remaining participants in the market are high-cost buyers, and the market price is close to their cost price, once there is a slight change in sentiment, it is easier to trigger panic selling, causing a cascading price drop, forming a top.

Tops are usually accompanied by a significant amount of Realized Profit

Conclusion  

The above is all the content of On-Chain Data School (Part Three). For readers interested in delving deeper into on-chain data analysis, remember to keep track of this series of articles!

If you want to see more analysis and teaching content about on-chain data, feel free to follow my Twitter (X) account!

Hope this article has been helpful to you. Thank you for reading.

Original Article Link

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia