Introducing: Delta Price/Realized Price Ratio (DPRP)
[THREAD]
This ratio can be used to identify major Bitcoin bull run tops.
The idea to compare DP and RP was conceptualized in David Puell's article: medium.com/@kenoshaking/b…
This ratio shows when Delta cap (difference between realized capitalization and the all-time moving average capitalization of Bitcoin) converges with Realized capitalization (cap based on when coins were last moved)
Without taking a ratio of the two, here are the convergences:
An interesting thing to note: Each peak is higher.
If this pattern continues, this bull run still has a ways to go.
This arc of higher tops resembles @woonomic's top cap model as well.
Over the long term, Bitcoin tends to move very mechanically.
Special thanks to the following:
@kenoshaking: Conceptualizing delta cap and the idea to compare delta to realized. (go check out his article)
@glassnode: Data
@SethSteiman: Coding
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