Fountainhead Digital co-founder Vicky Yang introduced Proximity Support-Resistance (PSR), a new on-chain analytics framework that converts Cost Basis Distributions into actionable time-series signals by weighting supply clusters based on their distance from spot price. The methodology addresses limitations in traditional aggregate metrics like MVRV and NUPL, which are often dominated by large, slow-moving supply pools, as well as cohort-based indicators that can miss broader structural walls.
The core components include the Proximity Support Index (PSI) and Proximity Resistance Index (PRI), which quantify the share of proximity-weighted supply below and above current price levels, respectively. Yang also extended the logic to create valuation metrics such as Proximity MVRV (pMVRV), Proximity NUPL (pNUPL), and Proximity Premium (PP), the latter normalizing the gap between spot and cost basis using 30-day volatility to allow for cross-cycle comparisons.
Historical backtests demonstrate PSR's predictive utility: PSI shifts preceded key Bitcoin rallies in late 2023 and early 2025, while deteriorating support structures signaled upcoming declines in late 2025 and mid-2026 despite stable price action. Regression analysis across BTC and ETH confirmed that proximity-based metrics consistently add greater explanatory power to forward return models than standard short-term holder aggregates, with Proximity Premium showing significant statistical robustness at the 1% level.
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