The current indicator in the chart has dropped to 3.16

In 2014, this indicator fell from 3.16 to 1 over 285 days
In 2018, this indicator fell from 3.16 to 1 over 274 days
In 2022, this indicator fell from 3.16 to 1 over 296 days

The upper part of the chart shows the #BTC price;
The middle part of the chart shows Bitcoin realized profit (365-day MA) and Bitcoin realized loss (365-day MA);
The lower part of the chart shows the ratio of Bitcoin realized profit (365-day MA) to Bitcoin realized loss (365-day MA), also known as the “Realized Profit and Loss Ratio (365-day MA)”

This ratio compares the moving average of investors’ realized profits (the portion where selling price is higher than purchase price) and realized losses (the portion where selling price is lower than purchase price) over the past 365 days, reflecting the overall profit and loss status of market participants.

In a bull market, the profit-to-loss ratio is usually higher because investors tend to take profits at high prices.
In a bear market, this ratio is usually lower because investors may sell at a loss, reflecting market panic or capitulation behavior.

Using the 365-day moving average smooths out short-term fluctuations and highlights long-term trends. This indicator is suitable for judging whether the market is overheated (high ratio) or overly panicked (low ratio), making it a powerful tool for market cycle and trend analysis.