The Best On-Chain Metric For Short-Term Bitcoin Trading

aSOPR by Glassnode

SOPR stands for Spent Output Profit Ratio. What does it mean? Simply put, it measures the profit or loss of each transaction (price sold/price paid). When SOPR is greater than 1 it means that transaction was in profit, and vice versa. For example, person A buys Bitcoin at $10,000 and sells at $20,000, giving that transaction a … Read more

Best Indicator For Recognizing Crypto Pumps

Bitcoin: Balance on Exchanges

Todays metric I learned from one of the OG’s of crypto, Willy Woo. It’s another great indicator of where we currently are in the market cycle. In previous articles we spoke about inflows and outflows of Bitcoin onto exchanges. When a holder moves Bitcoin onto an exchange or moves it off an exchange into cold storage … Read more

Bitcoin Is Experiencing A Classic Growth Curve

Bitcoin: Number of Addresses with a Non-Zero Balance

In order to hold Bitcoin a user needs to have a Bitcoin address. This address can be on an exchange, hardware wallet, software wallet, or paper wallet. Any user could have multiple wallets and therefore multiple Bitcoin addresses. There are a few ways to track Bitcoin address metrics to see growth on the network. Today, … Read more

Bitcoin: Net Unrealized Profit/Loss

Bitcoin: Net Unrealized Profit/Loss (NUPL) by Glassnode

A big discussion on Crypto Twitter lately has be whether this is the market top or not. A good metric to help examine crypto market cycles is Net Unrealized Profit/Loss (NUPL). Glassnode defines NUPL as, “Net Unrealized Profit/Loss is the difference between Relative Unrealized Profit and Relative Unrealized Loss. This metric can also be calculated … Read more

Bitcoin Difficulty Ribbon: Find Good Buying Opportunities Using Mining Difficulty

Bitcoin Difficulty Ribbon by Glassnode

Today, I want to introduce you to the Bitcoin Difficulty Ribbon. Similar to other metrics like Reserved Risk and Thermocap Ratio, the Bitcoin Difficulty Ribbon is another reliable metric. What is the Bitcoin Difficulty Ribbon? Glassnode defines the Bitcoin Difficulty Ribbon as, “The Difficulty Ribbon is an indicator that uses simple moving averages (200d, 128d, 90d, 60d, 40d, 25d, … Read more

Bitcoin All Time Highs & Drawdowns

bitcoin price drawdowns

Investing in Bitcoin can have its stressful moments. The ruthless volatility Bitcoin takes on, especially during big resistance and support breaks, can be gut wrenching. However, it’s because of this volatility that Bitcoin has reached a $1 trillion market cap and $55,000 per Bitcoin. The thing to consider about Bitcoin is that it has always … Read more

Bitcoin Reserve Risk: Long-Term Holder Confidence

Bitcoin Reserve Risk by Glassnode

In this previous article, we spoke about HODL Waves and UTXO’s. Expanding on UTXO’s, there is a metric called “Bitcoin Days Destroyed” or BDD for short. BDD is the amount of days erased from a UTXO once that Bitcoin has been moved to another address. Coins that have been in the same address for a long … Read more

Predict Bitcoin Tops With This Metric

Market Cap to Thermocap

Bitcoin can be extremely volatile and unpredictable. The moment you think it’s about to trend upwards, it can completely drop in price. Many traders like to use technical analysis to predict price action in Bitcoin. Personally, I use technical analysis myself with my short-term trading portfolio. However, using the metrics we have already discussed in … Read more

4 Bitcoin Volume Metrics To Track

Bitcoin Futures Volume

When it comes to Bitcoin volume, there are a few different metrics we can track. The most obvious being total trading volume across all exchanges. However, there is one thing to keep in mind about this number; the reported trading volume vs the real trading volume. It is common knowledge in the crypto space that … Read more