Bitcoin investment can be clear or complicated as you choose. However, by using some free and powerful measures, investors can get a great advantage for participants in the regular market. These tools, available for free, simplify the analysis of the chain and help strip emotional decisions.
Hoop Hodl
the Hoop Hodl Metric is one of the most exact tools in the toolbox on the chain. It analyzes the realized price, the average cost basis for all bitcoin kept on the network, and divides it according to the age tapes. A large group of age ranges are metal currencies for three months or less. When this sector dominates the maximum achieved, it indicates a flood of new capital that enters the market, usually FOMO retail. Historical peaks coincided with these younger properties, which often appear in warm colors on the graph, with the main market peaks, such as those in late 2017 and 2021.
On the contrary, when the effect of short -term holders decreases to the lowest level, it is generally in line with the bottom of the bear market. These are the periods in which a few new buyers enter, the feeling of dark, and the prices are very discounted. This scale can visually enhance contradictory strategies, and buy when others are afraid and sell when greed dominates.
Mall multi -mall
the Mall multi -mall It helps in measuring the feelings of miners by comparing their current daily revenues (in US dollars) in rewards and fees for one general average. High values indicate that miners are very profitable, while low values indicate distress, and may indicate a lack of value.
During the previous sessions, its lowest levels in Puell Mostts were excellent opportunities for accumulation, coinciding with times when mining workers, with high costs and operational risks, struggled to remain profitable. This is an economic ground and a high -confidence entry signal.
MVRV Z-SCORE
the MVRV Z-SCORE The scale may be the most famous scale in a chain arsenal. It is the unification of the percentage between the market value (the current price is multiplied by the circulating supply) and the achieved value (average cost or the price of rights), which is normalized throughout the volatile Bitcoin history. This degree Z determines extremist market conditions, and provides clear signals for shirts and horns.
Historically, the degree of Z above 7 indicates that the conditions of the negative market are mature of a local summit. Low than zero degree z with the most attractive accumulation periods. Like any scale, it should not be used in isolation. This scale is very effective when it is associated with some others who have been discussed in this analysis for meeting.
Funding rates
Bitcoin financing rates It reveals the feeling of future traders in the field of benefit. Positive financing means that the long paid shorts, indicating a bullish bias. High financing often coincides with euphoria and precedes corrections. On the contrary, negative financing shows fear and can precede sharp gatherings.
The currency -accepted financing rates provide a clearer sign than US dollar pairs, as BTC traders risk directly. Nails often in either direction indicate contradictory opportunities, with high warning rates of high temperature and low or negative rates in the bottoms.
Sopran
the SOPR profit ratio (SOPR) The paths, whether the coins that were transported on the chain were in profit or loss at the time of treatment. Reading higher than zero means that the average currency that was sold was sold in a profit; Less zero suggests realistic losses.
Acute landline nails indicate surrender, and investors lose losses. These often distinguish sales that depend on fear and main purchase opportunities. The continuous SOPR readings above zero can indicate ascending, but achieving excessive profit may refer to feverish markets.
conclusion
By setting these scales: investors get the achieved HODL waves, multiple PUELL, MVRV Z-SCORE, financing rates, SOPR, and multi-dimensional vision investors of Bitcoin market conditions. There is no single indicator that provides all answers, but a meeting over several increases the possibility of success. Whether you are accumulating in the bear market or distribution near a potential summit, these free tools can help you remove feelings, follow up on data, and improve the edge significantly in the Bitcoin market.
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Liability: This article is intended for media purposes only and should not be considered financial advice. Always perform your research before making any investment decisions.
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