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What is onchain analysis or how blockchain gives signals 👀
Traders and investors try to predict the price of bitcoin using the usual technical and fundamental analysis, but the use of the first cryptocurrency blockchain, has led to the emergence of a new direction.
Onchain analysis is a set of metrics for predicting the price of cryptocurrencies based on blockchain data.
It sounds obscure, but if major wallets start selling an asset, hence the bull market is about to end. Or in case of mass sending of stablecoins to crypto exchanges, it is logical to expect cryptocurrency purchases and price increase.
There are so many metrics of onchain analysis and if you want to break them down in detail, let's collect 750 👍
For example, in the picture you see The Puell Multiple, which shows the ratio of the value of BTC mined per day in dollars to the 365-day moving average. This indicator gives great signals when to buy and sell bitcoin, today it is in the neutral zone.
Save it so you don't forget 😉
