5 Free Metrics Every Bitcoin Investor Needs
The post 5 Free Metrics Every Bitcoin Investor Needs appeared on BitcoinEthereumNews.com. Bitcoin investing can be as straightforward or as complex as you choose. Yet, by utilizing a few free and powerful metrics, investors can gain a considerable edge over the average market participant. These tools, available for free, simplify on-chain analysis and help strip away emotional decision-making. Realized Cap HODL Waves The Realized Cap HODL Waves metric is one of the more nuanced tools in the on-chain toolbox. It analyzes the realized price, the average cost basis for all Bitcoin held on the network, and breaks it down by age bands. A significant set of age bands is coins held for three months or less. When this segment dominates the realized cap, it indicates a flood of new capital entering the market, typically driven by retail FOMO. Historical peaks in these younger holdings, often shown in warm colors on the chart, have coincided with major market tops, like those in late 2017 and 2021. Figure 1: The Realized Cap HODL Waves chart filtered to show recent capital inflows. View Live Chart Conversely, when the influence of short-term holders diminishes to a low, it generally aligns with bear market bottoms. These are periods when few new buyers are entering, sentiment is bleak, and prices are deeply discounted. This metric can visually reinforce contrarian strategies, buying when others are fearful and selling when greed dominates. Puell Multiple The Puell Multiple helps gauge the sentiment of miners by comparing their current daily revenue (in USD) in block rewards and fees against a one-year average. High values indicate miners are extremely profitable, while low values suggest distress, potentially signaling undervaluation. Figure 2: Historically, miners’ sentiment, as captured by the Puell Multiple, has provided reliable cycle top and bottom signals. View Live Chart During previous cycles, lows in the Puell Multiple have been excellent opportunities for…
The post 5 Free Metrics Every Bitcoin Investor Needs appeared on BitcoinEthereumNews.com.
Bitcoin investing can be as straightforward or as complex as you choose. Yet, by utilizing a few free and powerful metrics, investors can gain a considerable edge over the average market participant. These tools, available for free, simplify on-chain analysis and help strip away emotional decision-making. Realized Cap HODL Waves The Realized Cap HODL Waves metric is one of the more nuanced tools in the on-chain toolbox. It analyzes the realized price, the average cost basis for all Bitcoin held on the network, and breaks it down by age bands. A significant set of age bands is coins held for three months or less. When this segment dominates the realized cap, it indicates a flood of new capital entering the market, typically driven by retail FOMO. Historical peaks in these younger holdings, often shown in warm colors on the chart, have coincided with major market tops, like those in late 2017 and 2021. Figure 1: The Realized Cap HODL Waves chart filtered to show recent capital inflows. View Live Chart Conversely, when the influence of short-term holders diminishes to a low, it generally aligns with bear market bottoms. These are periods when few new buyers are entering, sentiment is bleak, and prices are deeply discounted. This metric can visually reinforce contrarian strategies, buying when others are fearful and selling when greed dominates. Puell Multiple The Puell Multiple helps gauge the sentiment of miners by comparing their current daily revenue (in USD) in block rewards and fees against a one-year average. High values indicate miners are extremely profitable, while low values suggest distress, potentially signaling undervaluation. Figure 2: Historically, miners’ sentiment, as captured by the Puell Multiple, has provided reliable cycle top and bottom signals. View Live Chart During previous cycles, lows in the Puell Multiple have been excellent opportunities for…
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