🐳 Capital Flow Notes:
“Data: ETH falls below $1,950”
After the news comes out, I ask three questions about fund flows:
1. Are large orders mostly buying or selling?
2. Can trading volume of $ETH ($648 million in 24h) continue to grow?
3. Are large holders making any unusual withdrawals from exchanges?
Only when all three point in the same direction can the news be said to have been validated by fund flows; otherwise, it’s mostly just sentiment-driven volatility.
One piece of news can’t determine the trend, but it may affect the pace.
“Data: ETH falls below $1,950”
After the news comes out, I ask three questions about fund flows:
1. Are large orders mostly buying or selling?
2. Can trading volume of $ETH ($648 million in 24h) continue to grow?
3. Are large holders making any unusual withdrawals from exchanges?
Only when all three point in the same direction can the news be said to have been validated by fund flows; otherwise, it’s mostly just sentiment-driven volatility.
One piece of news can’t determine the trend, but it may affect the pace.