Fixed network profits and losses
Indicator appearance
Network profit and loss is a sentiment analysis indicator that displays the average profit or loss of all coins that change addresses daily.
<aside> 💡 For each coin that moves on the chain. NPL takes the price at which it was last moved and assumes that this is its acquisition price. Once it changes address again, NPL assumes the coin has been sold.
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In the chart settings window, the user can select the display colors and transparency of the indicator.
Indicator Graphics Settings
The indicator is available on all subscription versions
Network profit & loss is an indicator that calculates the net profit or loss (dollar value) for all coins for the time period in question. This provides a reflection of aggregate market sentiment, capital inflows or outflows, and network profitability trends.
A typical interpretation scheme is as follows:
Positive values indicate that profits are being realized within the network. If the price continues to rise, it indicates capital inflows absorbing the sell side. Progressively rising peaks may also indicate an increased likelihood of a local high if demand declines as larger profits are realized.
Negative values indicate that losses are being realized within the chain. If the price continues to decline, it indicates an outflow of capital. Values of deep lows may signal investor capitulation events, increasing the likelihood of an upward reversal.
Neutral values close to zero indicate spent coins with transactions close to their underlying value. This can signal that high-yielding or loss-making coins remain dormant. In a bull market correction, it may signal renewed positive sentiment and the likelihood of a rebound in prices. In bear markets, it may indicate investors exiting at their cost, creating additional resistance.
Bitcoin NPL
Source: Glassnode academy