Discuss Bitcoin’s Small Cap ratio (Small Cap divided by Thermal Cap) to evaluate market cycles and trading opportunities. Should Bitcoin be sold and taken profit?

Core metrics: The video discusses Bitcoin’s small cap/hot cap ratio (Small Cap divided by Thermal Cap) to evaluate market cycles and trading timing. Thermal Cap: The sum of the cumulative income of miners (block subsidy + transaction fees). Small Cap: The total market value of Bitcoin balance held by mining entities (based on current price). Historical Rules: When the ratio is below 2, it is usually regarded as a buy signal for Bitcoin. The high point gradually decreases: the historical peak has ranged from nearly 40 (early cycles) → 20 → 11.5 → the current cycle is about 6, reflecting the maturity of the market or the weakening of volatility. Lows gradually rise: a higher low point structure is formed, implying that the bottom support is gradually strengthening. Chart trend analysis: Descending wedge: Highs and lows form "lower highs" and "higher lows" respectively, which may indicate future volatility convergence. The current cycle peak (about 6) is much lower than the previous round (11.5), but if the bear market appears in the future, it may remain above 2. Application suggestions: This indicator needs to be judged comprehensively in combination with other tools (such as on-chain data, technical analysis), rather than relying solely. Suitable for validating the top (high ratio) and bottom (low ratio) of the market. Conclusion: The small cap/hot cap ratio is an important tool for judging the Bitcoin cycle, but it is necessary to pay attention to its historical limitations (such as the decreasing peak trend), and it may further adapt to market changes in the future. Call for Action: Audiences can focus on the combination of this indicator with other analytics to capture buying and selling opportunities while maintaining a flexible observation of market dynamics. #Bitcoin Market Analysis#Bitcoin Analysis#Bitcoin Trading Tips#Bitcoin BTC