In/Out of the Money Around Price
The In/Out of the Money Around Price (IOMAP) indicator is a zoomed in version of the GIOM covering the most relevant clusters within 15% of the current price in both directions. By doing so, the IOMAP spots key buying and selling areas that are expected to act as support and resistance.
The IOMAP applies the same technique as the Global In/Out of the Money to classify addresses that are profiting (in the money), breaking even (at the money) or losing money (out of the money) on their positions.
In/Out of the Money Around Price (IOMAP) for Bitcoin
The IOMAP is useful for traders to know the next price levels where addresses are expected to buy and sell based on users’ positions and profits. As well, it provides an idea of the following support and resistance levels. For example, in the image above we observe a large cluster in the money between $11,510 and $11,860 where buying activity is expected to pick up as the 1.7 million addresses who had previously bought at this price range are likely to provide support.
Similarly, the large cluster of 515 thousand addresses currently losing money between $11,880 and $12,220 is expected to act as resistance as it’s a price range with high concentration of sellers based on addresses’ positions on-chain.
⭐️ Quick Tip: The IOMAP is a great complement to traditional technical analysis (TA). Think of it as a crypto-native indicator of support and resistance: using blockchain data we determine key areas where holders’ positions are concentrated creating buying and selling activity.