How can On-Chain Analysis Help Crypto Currency Traders?
What is On-Chain analysis?
On-Chain analysis is an emerging field which examines the fundamental factors of crypto currency to improve investment and trading decisions.
Basically its a system of charts that look at the blockchain and other sources of information to help understand what is happening to the system, how its being used (fundamentals behaviors) and what its likely to mean.
For example, we have a chart that looks at BTC movement > we look at big BTC wallets and when or if they are being moved away from Exchanges to personal wallets or from personal wallets to exchanges. This then gives us a picture
of the volume of BTC moving back and foreword from exchanges and usually when big volumes move to exchanges, its likely to be sold off some time soon.
Similarly we have charts on miners and what’s happening to their accumulated Bitcoin and so on.
Below are examples of these charts and how we interpret the information.
For more detailed information, refer to this blog >
When it comes to our Telegram reports group, the following is provided for the members:
a) Detailed report on a regular basis. Minimum x2 a month
b) Update reports when the situation is unexpected or change of thought and in some cases, re-enforce the previous reports conclusions.
c) Other sources of information extracted from tweets or traders that can benefit or enhance decision making
d) Glassnode or other OnChain data charts – updates posted
2 examples – BTC supply shock and BTC holdings. The next section below gives a screen shot of what the report format looks like.
We then provide a summary as to what the charts say in the context of a investor or trader.
Supply shock: The market is undergoing supply shock at levels that price it above $50k. Price needs to climb +50% to find balance with historical levels of valuation. This is expected to happen once fear subsides from the market. To do this price needs to break above its current resistance trend-line.Supply