Bitcoin: Top Cap

Indicator Overview

This indicator uses market cap and price information as inputs. It is therefore not an onchain indicator.

To calculate Top Cap, it is first necessary to calculate Average Cap, which is the cumulative sum of Market Cap divided by the age of the market in days. This creates a constant time-based moving average of market cap.

Once Average cap is calculated, those values are multiplied by 35. The result is Top Cap.

For much of Bitcoin’s history, Top Cap correctly predicted the Bitcoin price high’s of the major cycles where price had gone parabolic due to market euphoria and FOMO (fear of missing out). It failed to do so in 2021 as there was a rounded top to the cycle, not a parabolic top.

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Top Cap was created by @woonomic.