OPEN-SOURCE SCRIPT
Bitcoin Thermocap [InvestorUnknown]

The Bitcoin Thermocap indicator is designed to analyze Bitcoin's market data using a variant of the "Thermocap Multiple" concept from BitBo. This indicator offers several modes for interpreting Bitcoin's historical block and price data, aiding investors and analysts in understanding long-term market dynamics and generating potential investing signals.
Key Features:
1. Thermocap Calculation

Source: Bitbo
Pine Script®
2. Multiple Display Modes:
The indicator can display data in four different modes, offering flexibility in interpretation:
3. Normalization and Rescaling
Pine Script®
Usage
The Bitcoin Thermocap indicator is ideal for long-term market analysis, particularly for investors seeking to assess Bitcoin's relative value based on mining activity and price dynamics. The different display modes and customization options make it versatile for a variety of market conditions, helping users to:
By leveraging this Thermocap-based analysis, users can gain a deeper understanding of Bitcoin's historical and current market position, helping to inform investment strategies.
Key Features:
1. Thermocap Calculation
- The core of the indicator is based on the Thermocap Multiple, which evaluates Bitcoin's value relative to its cumulative historical blocks mined.
- Thermocap Formula:
Source: Bitbo
btc_price = request.security("INDEX:BTCUSD", "1D", close)
BTC_BLOCKSMINED = request.security("BTC_BLOCKSMINED", "D", close)
// Variable to store the cumulative historical blocks
var float historical_blocks = na
// Initialize historical blocks on the first bar
if (na(historical_blocks))
historical_blocks := 0.0
// Update the cumulative blocks for each day
historical_blocks += BTC_BLOCKSMINED * btc_price
// Calculate the Thermocap
float thermocap = ((btc_price / historical_blocks) * 1000000) // the multiplication is just for better visualization
2. Multiple Display Modes:
The indicator can display data in four different modes, offering flexibility in interpretation:
- RAW: Displays the raw Thermocap value.
- LOG: Applies the logarithm of the Thermocap to visualize long-term trends more effectively, especially for large-value fluctuations.
- MA Oscillator: Shows the ratio between the Thermocap and its moving average (MA). Users can choose between Simple Moving Average (SMA) or Exponential Moving Average (EMA) for smoothing.
- Normalized MA Oscillator: Provides a normalized version of the MA Oscillator using a dynamic min-max rescaling technique.
3. Normalization and Rescaling
- The indicator normalizes the Thermocap Oscillator values between user-defined limits, allowing for easier interpretation. The normalization process decays over time, with values shrinking towards zero, providing more relevance to recent data.
- Negative values can be allowed or restricted based on user preferences.
f_rescale(float value, float min, float max, float limit, bool negatives) =>
((limit * (negatives ? 2 : 1)) * (value - min) / (max - min)) - (negatives ? limit : 0)
f_max_min_normalized_oscillator(float x) =>
float oscillator = x
var float min = na
var float max = na
if (oscillator > max or na(max)) and time >= normalization_start_date
max := oscillator
if (min > oscillator or na(min)) and time >= normalization_start_date
min := oscillator
if time >= normalization_start_date
max := max * decay
min := min * decay
normalized_oscillator = f_rescale(x, min, max, lim, neg)
Usage
The Bitcoin Thermocap indicator is ideal for long-term market analysis, particularly for investors seeking to assess Bitcoin's relative value based on mining activity and price dynamics. The different display modes and customization options make it versatile for a variety of market conditions, helping users to:
- Identify periods of overvaluation or undervaluation.
- Generate potential buy/sell signals based on the MA Oscillator and its normalized version.
By leveraging this Thermocap-based analysis, users can gain a deeper understanding of Bitcoin's historical and current market position, helping to inform investment strategies.
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Skrip sumber terbuka
Dalam semangat sebenar TradingView, pencipta skrip ini telah menjadikannya sumber terbuka supaya pedagang dapat menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupun anda boleh menggunakannya secara percuma, ingat bahawa menerbitkan semula kod ini adalah tertakluk kepada Peraturan Dalaman kami.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.