What is this indicator?
Measures an asset's scarcity by comparing its existing stock to its annual production rate, a model first used for gold. This model is controversial for forecasting Bitcoin's price and has serious supporters and critics alike.
How to read the chart
Sharp changes or a move outside this metric's normal range often coincide with important price turning points, and it's used as a secondary confirmation alongside technical analysis.
Practical tip
On-chain data is best used to complement technical analysis, not replace it; interpreting a single metric in isolation can be misleading.