NEWSLETTER
bitcoin's price movements dominate the headlines, but the true btc story is under the surface. Beyond technical analysis and prices speculation, data in the chain offer an incomparable vision of the supply, demand and behavior of real -time investors. By taking advantage of these ideas, merchants and investors can anticipate market trends, follow institutional movements and make data -based decisions.
To see this topic in depth, see a recent YouTube video here: Mastar bitcoin data on the chain
Price and MVRV Z-SCORE
The data in the chain refer to publicly available transaction records in the bitcoin block chain. Unlike traditional markets, where investors are obscured, bitcoin transparency allows real -time analysis of each transaction, wallet movement and network activity. This information helps investors identify important trends, accumulation areas and possible price inflection points.
One of the most crucial metrics in the chain is Price madewhich reflects the average cost base of all btc in circulation. Unlike traditional assets, where investor costs are difficult to determine, bitcoin provides real -time visibility on when most holders have profits or losses.
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To improve the usefulness of the price, analysts use the MVRV Z-SCOREwhich measures the deviation between the market value and the value carried out, standardized for bitcoin volatility. This indicator has historically identified optimal purchase areas when it enters the lowest range and a potential overvaluation when it enters the red zone.
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Long -term holder monitoring
Another key metric is the 1+ years Hodl wavewhich tracks the bitcoin addresses that have not moved funds for at least a year. A ascent Hodl wave indicates that investors choose to maintain, reducing the circulating supply and creating ascending price pressure. On the contrary, when this metric begins to decrease, it suggests that the profits and potential distribution.
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Hodl waves Visualize the complete distribution of bitcoin's property by age bands. The filtering to the new market participants of 3 months or less reveals the typical levels of retail participation. Picos in short -term holders are generally indicated by the market, while low levels indicate ideal accumulation areas.
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Detect whale movements
Suppliers of destroyed adjusted currency Quantifies the total btc moved, weighted for how long this data was maintained and standardized by the circulating supply at that time. For example:
- 1 btc held for 100 days → 100 days of destroyed coins
- 0.1 btc held for 1,000 days → 100 days of destroyed coins
This metric is invaluable to detect the activity of whales and the taking of institutional gains. When the coins suddenly move suddenly, it often indicates to the great headlines that they leave positions. Historical data confirms that peaks at this point of data are aligned with the main tops and market funds, which reinforces its value in the cycle analysis.
<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MjEyODIxOTgwNjk5Njk4ODE2/figure-5-bitcoin-supply-adjusted-cdd-chart.jpg”>
Profits and losses made
He Gasted Production Profit Rat (SOPR) reveals the profitability of btc transactions. A SOPR value above 0 indicates that the average bitcoin that moves has profits, while a value below 0 means that the average sale is loss. When observing Sopr Spikes, merchants can identify the euphoric gain taking, while SOPR decreases often accompany the capitulations of the bearish market.
<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MjEyODIxOTg2NjA1Mjc4ODQ4/figure-6-bitcoin-sopr-chart.jpg”>
Trusting a single metric can be misleading. To increase the probability of precise signals, investors should seek confluence between multiple indicators in the chain.
For example, when:
- MVRV Z-SCORE is in the green zone (undervalued)
- SOPR indicates high losses made (capitulation)
- HODL waves show a decrease in short -term holders (selling exhaustion)
This alignment historically marks optimal accumulation zones. You should also seek confluence for any planned profits for your btc holdings, looking for the previous metrics that indicate otherwise to delineate overheated market conditions.
Conclusion
bitcoin data in the chain provide a transparent and real -time vision of market dynamics, offering investors an advantage in decision making. When tracking supply trends, investors psychology and accumulation/distribution cycles, bitcoiners can be better positioned for long -term success.
Explore live data, graphics, indicators and in -depth research to stay in front of bitcoin's price action in bitcoin Pro Magazine.
Discharge of responsibility: This article is only for informative purposes and financial advice should not be considered. Always do your own research before making investment decisions.
