Created by the famous “Plan B”, this indicator shows the price “temperature” of Bitcoin, in order to determine if the asset is overheating or not. This indicator is relevant for mid and long term investors, not so much for traders.
It uses the 200 Week Moving Average and is easily understandable thanks to a color code ranging from purple to red.
A dot is added each month on the chart, the more the color goes towards the red, the more the asset is overheating.