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On-chain Data Academy (Part 5): How Many People Are Actually Making Money? A Five-Minute Overview of the Objective Sentiment Indicator PSIP
Original Article Title: "On-Chain Data Classroom (Part 5): How Many People Are Actually Making Money? A Five-Minute Guide to the Objective Sentiment Indicator PSIP!"
Original Article Author: Mr. Berg, On-Chain Data Analyst
This article is the 5th part of the On-Chain Data Classroom series, with a total of 10 parts. It will take you step by step through understanding on-chain data analysis. Interested readers are welcome to follow this series.
Related Reading: "On-Chain Data Classroom (Part 4): Visualized BTC Chip Price Distribution Chart"
TL;DR
- This article will introduce the on-chain indicator PSIP
- PSIP = Percentage of Supply in Profit, among circulating $BTC
- It can serve as a guide to market sentiment, with applications in recognizing market tops and bottoms
What is PSIP?
PSIP, short for Percent Supply in Profit, is defined as "the percentage of circulating $BTC that is in a state of profit."
Calculation method:
It distinguishes profit and loss chips by "comparing each $BTC's last transfer price with the current price."
When the current price is higher than a certain $BTC's last transfer price, this $BTC is considered a profit chip.
What if Most Chips Are in a Loss...?
An important application scenario of PSIP is market bottoms. When most chips are in a loss, it is usually a good time to buy the dip.
The logic is straightforward:
Under similar conditions, the more profitable holders, the greater the selling pressure from profit-taking in the market, and vice versa.
As shown in the chart below, historical points where $BTC had PSIP <50% are marked, indicating very precise opportunities to buy the dip
What if the Majority of Chips are in Profit?
As shown in the chart below, the percentage of chips in profit reaches a maximum value of 100%. Therefore, it is difficult to determine a top based solely on high PSIP.
Here is an interesting logic to share: “Observe the Correlation Change between PSIP and Price”
This idea is derived from the following analysis: The Market Pulse – Week 36, 2022
Conclusion
The above is all the content of On-Chain Data School (Part Five). For readers interested in further studying on-chain data analysis, remember to keep track of this series of articles!
If you want to see more analysis and teaching content on on-chain data, feel free to follow my Twitter account (X)!
I hope this article has been helpful to you. Thank you for reading.
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WEEX P2P update: Country/region restrictions for ad posting
To improve ad security and matching accuracy, WEEX P2P now allows advertisers to restrict who can trade with their ads based on country or region. Advertisers can select preferred counterparty locations for a safer, smoother trading experience.
I. Overview
When publishing P2P ads, advertisers can now set the following:
Allow only counterparties from selected countries or regions to trade with your ads.
With this feature, you can:
Target specific user groups more precisely.Reduce cross-region trading risks.Improve order matching quality.
II. Applicable scenarios
The following are some common scenarios:
Restrict payment methods: Limit orders to users in your country using supported local banks or wallets.Risk control: Avoid trading with users from high-risk regions.Operational strategy: Tailor ads to specific markets.
III. How to get started
On the ad posting page, find "Trading requirements":
Select "Trade with users from selected countries or regions only".Then select the countries or regions to add to the allowlist.Use the search box to quickly find a country or region.Once your settings are complete, submit the ad to apply the restrictions.
When an advertiser enables the "Country/Region Restriction" feature, users who do not meet the criteria will be blocked when placing an order and will see the following prompt:
If you encounter this issue when placing an order as a regular user, try the following solutions.
Choose another ad: Select ads that do not restrict your country/region, or ads that allow users from your location.Show local ads only: Prioritize ads available in the same country as your identity verification.
IV. Benefits
Compared with ads without country/region restrictions, this feature provides the following improvements.
Aspect
Improvement
Trading security
Reduces abnormal orders and fraud risk
Conversion efficiency
Matches ads with more relevant users
Order completion rate
Reduces failures caused by incompatible payment methods
V. FAQ
Q1: Why are some users not able to place orders on my ad?
A1: Their country or region may not be included in your allowlist.
Q2: Can I select multiple countries or regions when setting the restriction?
A2: Yes, multiple selections are supported.
Q3: Can I edit my published ads?
A3: Yes. You can edit your ad in the "My Ads" list. Changes will take effect immediately after saving.
App