STH MVRV + Double MA | JeffreyTimmermans

6. Jan.

STH MVRV + Double MA

This indicator combines blockchain analytics and technical analysis to provide traders with insights into market trends and cycles. At its core, it utilizes the Short-Term Holder (STH) Market Value to Realized Value (MVRV) ratio, a powerful metric in blockchain analysis, alongside Moving Averages (MA's) to offer a comprehensive view of market dynamics.

What Is the STH-MVRV Ratio?

The STH-MVRV ratio is a blockchain-based metric that compares the market value of Bitcoin held by short-term holders to its realized value.

• Market Value: The current price of Bitcoin multiplied by the number of coins held by short-term holders.
  
• Realized Value: The average price at which short-term holders acquired their Bitcoin, based on blockchain transaction data.
  

This ratio provides a unique perspective on market sentiment:

• Above 1: Short-term holders, on average, are in profit. This often signals a bullish market.
  
• Below 1: Short-term holders are, on average, at a loss, which can indicate bearish sentiment.
  

The STH-MVRV is particularly useful for identifying potential market tops or bottoms, as short-term holder behavior often reflects broader market trends.

How Does This Indicator Work?

The STH MVRV + Double MA indicator builds on the STH-MVRV ratio by integrating it with additional data and tools to enhance its practical use:

STH-MVRV Variations:

• STH-MVRV (MVRV): The traditional ratio as described above.
  
• Price-Based MVRV: A variation using Bitcoin price to measure similar dynamics.
  
• Average MVRV: A hybrid metric combining the two for balanced insights.
  

Dynamic Moving Averages (MA's):

• Primary SMA (STH-MVRV): Smooths out fluctuations in the STH-MVRV ratio over a default period of 155 days.
  
• Extra MA: A faster-moving average for shorter-term trends (default: 50 days).
  
• Second MA: A slower-moving average for longer-term trends (default: 200 days).
  

Visual and Alert Features:
Color-coded plots to highlight bullish or bearish conditions.
Alerts for key crossover events, such as when STH-MVRV crosses above/below critical levels or Moving Averages.

Key Features

STH-MVRV as a Sentiment Gauge:

• Use the ratio to determine whether short-term holders are profiting (bullish) or losing (bearish).
  

Moving Average Integration:

• Identify trends and reversals with customizable Moving Averages.
  
• Crossovers between MA's and the STH-MVRV indicate actionable trading signals.
  

Customizable Parameters:

• Tailor SMA and MA settings to align with your strategy.
  
• Adjust colors and labels for clearer insights.
  

Real-Time Updates:

• Dynamic labels display the current values of STH-MVRV, Price-based MVRV, or the Average, providing instant clarity.
  

How to Use This Indicator

Gauge Market Sentiment:

• Use the STH-MVRV to understand whether the market is overvalued or undervalued based on short-term holder behavior.
  

Trend Identification with MA's:

• Monitor crossovers between STH-MVRV and Moving Averages for potential buy or sell signals.
  

Analyze Market Cycles:

• Use the Average MVRV to gain a broader view of market conditions, balancing short-term and long-term insights.
  

What Makes This Indicator Unique?

• In-Depth Blockchain Metric: Builds directly on the STH-MVRV ratio, a key metric in blockchain analysis.
  
• Integrated Analysis: Combines the STH-MVRV with Moving Averages for enhanced functionality.
  
• Customizability and Practicality: Users can adapt the settings to fit their unique trading style, ensuring the tool is both flexible and powerful.
  

This combination of blockchain insights and technical tools makes the STH MVRV + Double MA indicator an essential addition to any trader’s arsenal. Use it to stay ahead of market trends and make informed decisions with confidence.

-Jeffrey

vor 6 Tagen

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