Glassnode Report Research

Net Realised Profit and Loss

Introduction

The Net Realised Profit and Loss data from Glassnode is an on-chain metric data that helps in identifying the cumulative profit and loss that is realised or left on the table by the total number of participants across the blockchain.

This kind of data has been very helpful to major on-chain analysts that can bet which side of the price trend we are in at a particular given point of time.

Current data as on 9th March, 2022

The chart above shows us how much of the market is realising losses vs profits. Seems simple enough. However, this can often tell us if we are in a bear market or if we are in a bull market, as it tends to act as a form of support/ resistance.

• In Bull markets, the trendline acts as a support, and it tends to show a good area to buy at. Notice the black circles marked with green graphs, price has continuously retested and bounced from there
• In Bear markets, the trendline acts as resistance (refer the overhead struggle faced by the red graphs) as it tends to be where many traders are looking to close positions close to their actual entry price.

Over the recent course of time we had almost a mini cycle and managed to break above for the second run. The push from $29000 to $69000 range.

Now It seems it is again acting as resistance and might indicate there is selling pressure from traders holding coins that are in major loss looking to get out at breakeven or during a pump up.

These on-chain metrics are very powerful tools and the reason why many investors lean towards on-chain analysts more than technical analysts. Data like this helps in identifying not only the current trend, but also could help in analysing a Cycle of an asset at a given point of time.

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