How To Easily Explain Bitcoin To A Newbie

Explaining Bitcoin as a non-sovereign, permissionless, hard-capped supply, global, immutable, decentralized, digital store of value can go way over peoples heads. It takes time learning about Bitcoin to understand why these characteristics matter. That’s why I’ve adopted a new approach to explaining Bitcoin when people ask me about it. I got this concept from Raoul … Read more

Breakdown: Market Value to Realized Value Ratio (MVRV)

Bitcoin: MVRV Z-Score

If you’re a frequent reader of this blog then you’re already familiar with Realized Cap. If you’re new then I suggest reading our article on Realized Cap. I will give a brief description in order to better explain MVRV. When calculating the value of a market like Bitcoin, most investors will use Market Cap which … Read more

The Best Metric For Finding Over Extended Bitcoin Markets

Realized HODL Ratio

Recently, we have written about short-term holders vs long-term holders. Also, we discussed Realized Cap. Both of these variables play into todays metric called Realized HODL Ratio. Through our research writing this blog we have found that price appreciation in Bitcoin bull markets coincides with short-term holders entering the market and taking majority share of … Read more

Bitcoin Balance on Exchanges: Binance vs Coinbase

Balance on Exchanges: Binance vs Coinbase

In previous articles we spoke about how short-term holders can take over a larger portion of on-chain activity compared to long-term holders later in cycles. Another metric that showcases this further is the Bitcoin balance held on Binance addresses compared to Coinbase addresses. Binance is known to be a crypto exchange mainly for retail investors … Read more

Find Crypto Market Tops With HODL Waves

Bitcoin: Realized Cap HODL Waves

In this article, I will focus on two charts. As this market cycle gets more volatile, finding a market top or close too is becoming extremely important. Every Bitcoin bull cycle consists of local tops and a global top. Local tops are short-term tops before a larger pullback, followed by another price uptrend. During previous … Read more

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

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