Bitcoin In/Out of the Money Around Price (IOMAP) Indicator
In/Out of the Money Around Price (IOMAP) Indicator is an easy and visual way to understand the distribution of Bitcoin buyers according to their entry price.
The size of each cluster in the IOMAP represents the volume of Bitcoins previously bought in a specified price range by analyzing wallets that bought Bitcoins at an average price above or below the current market price.
Bitcoins that are bought at an average price lower than the current market price are “In the Money” because they would make a profit in case of selling. Addresses that are bought at an average price higher than the current market price are “Out of the Money” because they would create a loss in case of selling.
The current IOMAP Indicator shows that 41.26% of the Bitcoin owners are In the Money and the big green ball in the range between $45,033.55 and 46,399.92 possibly explains why the price area of $45,000 – $46,000 worked a strong support to the big Bitcoin correction that is taking place during the last week. The red big ball on the right side (range between 49,189.61 and 50,555.99) also shows that the price of $50,000 is not only a psychological milestone but it was also a prize zone with a strong gathering of Bitcoin buyers. Integrating the above analysis to Sentiment Analysis models, looks very promising for a possible predictability of Bitcoin.
