Are you using on-chain analysis methods?

[MrSpasybo]

In the financial market, technical analysis methods^[1] have become so famous and familiar such as: Elliott wave, Gann, Wyckoff, Dow, Merill, Price Action, RSI, Ichimoku, MACD... This method approaches the market through price charts, volume, and open orders because traders cannot access more data from the stock or commodity market. If interested in trends in the economy or a business's financial statements, traders will need to use fundamental analysis methods.

Things were different when the crypto market appeared: because details of each transaction and account status are stored on the blockchain, in addition to price, transaction volume, and open orders on CEXs, traders have a lot of data on the blockchain for reference. This data-based market assessment has created on-chain analysis methods.

On-chain analysis, in essence, is the process of examining data directly on the blockchain to understand the behavior and actions of market participants. This data encompasses various aspects, including transaction history, wallet activity, and smart contract interactions. By meticulously analyzing this data, investors can glean valuable insights into: Market sentiment, Whale movements, Emerging trends. On-chain analysis, when employed effectively, can supplement traditional technical analysis and fundamental analysis, empowering investors to make more informed investment decisions^[2].

I'm a trader who uses technical analysis, but I'm also really surprised and interested when I read comments from traders who use on-chain analysis through Glassnode, CryptoQuant or Nansen. The story in the market becomes more interesting through the buying, selling, storing, and moving of tokens by whale, investors, or hot wallets of CEXs. Although it is known that on-chain data can be distorted or incomplete and that on-chain analysis cannot accurately predict the manipulation plans of Market makers or the current supply and demand status of each token, but their results make me feel like I can understand the market movement better, thereby being able to focus on a few important tokens instead of wasting a lot of time and effort on many other less potential tokens at that moment.

I have no intention of giving up Technical Analysis, it is the foundation and will be the direction I continue to pursue in the future. I also do not refuse to refer to comments from on-chain analysis. For me, the more data I analyze, the more reliable the prediction becomes.

Are you using on-chain analytics? What tools/websites do you often use? Do you believe that on-chain data is accurate and reliable to make investment decisions?
[1] Technical Analysis: What It Is and How to Use It in Investing
[2] What Is Onchain Analysis, And Why Is It Useful For Crypto Traders?

[joniboini]

I think the idea is not completely new. Doesn't it follow the money rule? This makes me remember the famous GME case that became hype a few years ago. I'm pretty sure there are other cases where people are looking at which assets a millionaire buys and vice versa, just that this becomes easily accessible in crypto since you can track almost every data on a public blockchain. I'm pretty sure we are already doing this even before this tool exist. I bookmarked some addresses that regularly buy new meme tokens just because I want to know which meme tokens will the user pump next.

[MrSpasybo]

I think the idea is not completely new. Doesn't it follow the money rule? This makes me remember the famous GME case that became hype a few years ago. I'm pretty sure there are other cases where people are looking at which assets a millionaire buys and vice versa, just that this becomes easily accessible in crypto since you can track almost every data on a public blockchain. I'm pretty sure we are already doing this even before this tool exist. I bookmarked some addresses that regularly buy new meme tokens just because I want to know which meme tokens will the user pump next.

You may be familiar with consulting on-chain data, I have only recently started to learn about it to improve the quality of my predictions. Some very famous on-chain analysis groups in Vietnam were able to predict the price increase of BTC and many other Altcoins by tracking the interactions of large MMs addresses in the crypto market. That really surprised me and I wanted to explore this method.

Do you often follow on-chain analytics on Youtube or in Telegram channels?

[Gideon99]

In the financial market, technical analysis methods^[1] have become so famous and familiar such as: Elliott wave, Gann, Wyckoff, Dow, Merill, Price Action, RSI, Ichimoku, MACD... This method approaches the market through price charts, volume, and open orders because traders cannot access more data from the stock or commodity market. If interested in trends in the economy or a business's financial statements, traders will need to use fundamental analysis methods.

Things were different when the crypto market appeared: because details of each transaction and account status are stored on the blockchain, in addition to price, transaction volume, and open orders on CEXs, traders have a lot of data on the blockchain for reference. This data-based market assessment has created on-chain analysis methods.

On-chain analysis, in essence, is the process of examining data directly on the blockchain to understand the behavior and actions of market participants. This data encompasses various aspects, including transaction history, wallet activity, and smart contract interactions. By meticulously analyzing this data, investors can glean valuable insights into: Market sentiment, Whale movements, Emerging trends. On-chain analysis, when employed effectively, can supplement traditional technical analysis and fundamental analysis, empowering investors to make more informed investment decisions^[2].

I'm a trader who uses technical analysis, but I'm also really surprised and interested when I read comments from traders who use on-chain analysis through Glassnode, CryptoQuant or Nansen. The story in the market becomes more interesting through the buying, selling, storing, and moving of tokens by whale, investors, or hot wallets of CEXs. Although it is known that on-chain data can be distorted or incomplete and that on-chain analysis cannot accurately predict the manipulation plans of Market makers or the current supply and demand status of each token, but their results make me feel like I can understand the market movement better, thereby being able to focus on a few important tokens instead of wasting a lot of time and effort on many other less potential tokens at that moment.

I have no intention of giving up Technical Analysis, it is the foundation and will be the direction I continue to pursue in the future. I also do not refuse to refer to comments from on-chain analysis. For me, the more data I analyze, the more reliable the prediction becomes.

Are you using on-chain analytics? What tools/websites do you often use? Do you believe that on-chain data is accurate and reliable to make investment decisions?
[1] Technical Analysis: What It Is and How to Use It in Investing
[2] What Is Onchain Analysis, And Why Is It Useful For Crypto Traders?

Yes, on the chain analysis is a very important tool for evaluating crypto currency. After analyzing the data of the coin you will know how the coin is being used, who is it, and how it's being traded. The data analysis can give a valuable information about the coin health and help you make Informed trading decisions.

[hugeblack]

For years, I have been seeing Glassnode analyzes on Twitter, and there are many accounts that use their analyzes to obtain price predictions, but I see that it is a helpful tool in addition to technical analysis, and whoever wants to verify the accuracy of Glassnode analyzes must open the price of Bitcoin in a window and compare it with the predictions of accounts that are based on Glassnode data on Twitter. You can go back at least 3 years and with a little comparison you will determine their accuracy.

[MrSpasybo]

For years, I have been seeing Glassnode analyzes on Twitter, and there are many accounts that use their analyzes to obtain price predictions, but I see that it is a helpful tool in addition to technical analysis, and whoever wants to verify the accuracy of Glassnode analyzes must open the price of Bitcoin in a window and compare it with the predictions of accounts that are based on Glassnode data on Twitter. You can go back at least 3 years and with a little comparison you will determine their accuracy.

Yeah, Glassnode and CryptoQuant always provide useful onchain information about the situation of BTC accounts and help investors identify the state of the market. In addition, the onchain research for ALTS is also very interesting: the accumulation process - migration to CEX - token distribution of whales can all be tracked and suggest possible future price fluctuations. I am also monitoring onchain analysis and combining it with the results of technical analysis to make predictions and trading decisions.

• ETH: Whale awakens and staked after 3 years (2024.03.07)
• FET: can be pushed to a new, higher price zone (2024.03.03)
• Upbit Making stops accumulating BTC: Altseason about to start?

[Captain Corporate]

Not really. I like to just buy and hold, which means that there is very very little amount of analysis I have to do. I understand that trading is one big part of the current market we are in, but doesn't mean that it's the best one. I think it's quite clear that we should probably stay away from it as much as we possibly can, and not really put too much thought into it. TA is all I need and for that, I do not need on chain at all. When trading (much smaller than the amount I am holding, just for fun) I tend to use indicators like Bollinger and macd and ema, those are usually enough and don't get me anything different in most cases, so I know when to get in and when to get out. Do I fail? Constantly, but it's usually my miscalculations.

[MrSpasybo]

Not really. I like to just buy and hold, which means that there is very very little amount of analysis I have to do. I understand that trading is one big part of the current market we are in, but doesn't mean that it's the best one. I think it's quite clear that we should probably stay away from it as much as we possibly can, and not really put too much thought into it. TA is all I need and for that, I do not need on chain at all. When trading (much smaller than the amount I am holding, just for fun) I tend to use indicators like Bollinger and macd and ema, those are usually enough and don't get me anything different in most cases, so I know when to get in and when to get out. Do I fail? Constantly, but it's usually my miscalculations.

We have many market analysis methods, onchain is just one of them. I also learn traditional technical analysis methods and they are also really effective, but they do not fully exploit the information that we have access to, for example on-chain data.

Onchain analysis is not synonymous with regular trading, it can support the holding or DCA strategies because it helps investors understand more about the narrative going on behind price fluctuations in the market. Personally, I focus on technical analysis but do not refuse any method if it proves to be effective and useful for investors.

[Trongduy]

We have many market analysis methods, onchain is just one of them. I also learn traditional technical analysis methods and they are also really effective, but they do not fully exploit the information that we have access to, for example on-chain data.

Onchain analysis is not synonymous with regular trading, it can support the holding or DCA strategies because it helps investors understand more about the narrative going on behind price fluctuations in the market. Personally, I focus on technical analysis but do not refuse any method if it proves to be effective and useful for investors.

I also often follow onchain update videos. On-chain is quite popular and is being pursued by many channels, providing more valuable data for the assessment process. If you work with the on-chain team to combine technical analysis, you will be able to make much more accurate comments and predictions, especially with large tokens like BTC and ETH or SOL.

Large funds often have plans to move and gradually accumulate tokens over a long period of time before pumping them up. If we know their actions, we can guess their intentions and invest accordingly to get the same profit.

[MrSpasybo]

I also often follow onchain update videos. On-chain is quite popular and is being pursued by many channels, providing more valuable data for the assessment process. If you work with the on-chain team to combine technical analysis, you will be able to make much more accurate comments and predictions, especially with large tokens like BTC and ETH or SOL.

Large funds often have plans to move and gradually accumulate tokens over a long period of time before pumping them up. If we know their actions, we can guess their intentions and invest accordingly to get the same profit.

I recently also referred to the comments from the Vietnamese 52Hz group that whales are accumulating and moving stablecoins + tokens between exchanges and private wallets, such as BTC and ETH, which have been identified as having the potential to increase strongly and have actually increased.

I do not have access to those analyzes, but it is true that they are very effective and can help investors be much more proactive in the investment process. Just a few correct identifications can lead to tremendous growth in assets.

[joniboini]

Do you often follow on-chain analytics on Youtube or in Telegram channels?

I don't particularly choose one specific channel, most of the time I search on social media like Twitter though. I don't think there's any YouTube channel that dedicates its content to this unless you're referring to pump & dump/trading groups that use some influencer tweets to make news. As far as I know, tons of Twitter accounts do this, so you should do your own research too if you don't want to be misled by them.

I recently also referred to the comments from the Vietnamese 52Hz group that whales are accumulating and moving stablecoins + tokens between exchanges and private wallets, such as BTC and ETH, which have been identified as having the potential to increase strongly and have actually increased.

I'd suggest you take the data only and ignore their analysis to some extent. Especially if they have a history of being biased towards one side or the other. You can also compare their data to make sure no misleading analysis has been done, or at least get a second point of view. I've seen many new accounts pop up saying this address or that address uses $100 and gains $1 million but turns out it was an exchange address or just insanely lucky on his first few transactions but lost a ton of money on their next trades.

[Rex067]

In the financial market, technical analysis methods^[1] have become so famous and familiar such as: Elliott wave, Gann, Wyckoff, Dow, Merill, Price Action, RSI, Ichimoku, MACD... This method approaches the market through price charts, volume, and open orders because traders cannot access more data from the stock or commodity market. If interested in trends in the economy or a business's financial statements, traders will need to use fundamental analysis methods.

Things were different when the crypto market appeared: because details of each transaction and account status are stored on the blockchain, in addition to price, transaction volume, and open orders on CEXs, traders have a lot of data on the blockchain for reference. This data-based market assessment has created on-chain analysis methods.

On-chain analysis, in essence, is the process of examining data directly on the blockchain to understand the behavior and actions of market participants. This data encompasses various aspects, including transaction history, wallet activity, and smart contract interactions. By meticulously analyzing this data, investors can glean valuable insights into: Market sentiment, Whale movements, Emerging trends. On-chain analysis, when employed effectively, can supplement traditional technical analysis and fundamental analysis, empowering investors to make more informed investment decisions^[2].

I'm a trader who uses technical analysis, but I'm also really surprised and interested when I read comments from traders who use on-chain analysis through Glassnode, CryptoQuant or Nansen. The story in the market becomes more interesting through the buying, selling, storing, and moving of tokens by whale, investors, or hot wallets of CEXs. Although it is known that on-chain data can be distorted or incomplete and that on-chain analysis cannot accurately predict the manipulation plans of Market makers or the current supply and demand status of each token, but their results make me feel like I can understand the market movement better, thereby being able to focus on a few important tokens instead of wasting a lot of time and effort on many other less potential tokens at that moment.

I have no intention of giving up Technical Analysis, it is the foundation and will be the direction I continue to pursue in the future. I also do not refuse to refer to comments from on-chain analysis. For me, the more data I analyze, the more reliable the prediction becomes.

Are you using on-chain analytics? What tools/websites do you often use? Do you believe that on-chain data is accurate and reliable to make investment decisions?
[1] Technical Analysis: What It Is and How to Use It in Investing
[2] What Is Onchain Analysis, And Why Is It Useful For Crypto Traders?

I use the it, on the on chain analysis methods it's a study of the behavior of crypto users by analyzing data which is stored on the Blockchain. Which includes the information if transactions, address and balance. During the analysis of data I can get info about the distribution of coins , trading activity carryout and users behavior.

[MUGNIA]

Are you using on-chain analytics? What tools/websites do you often use? Do you believe that on-chain data is accurate and reliable to make investment decisions?

I have never used detailed on chain analysis in every coin purchase, but I do not rule out watching it on YouTube as reference and comparison material in making decisions

[MrSpasybo]

I don't particularly choose one specific channel, most of the time I search on social media like Twitter though. I don't think there's any YouTube channel that dedicates its content to this unless you're referring to pump & dump/trading groups that use some influencer tweets to make news. As far as I know, tons of Twitter accounts do this, so you should do your own research too if you don't want to be misled by them.

I'd suggest you take the data only and ignore their analysis to some extent. Especially if they have a history of being biased towards one side or the other. You can also compare their data to make sure no misleading analysis has been done, or at least get a second point of view. I've seen many new accounts pop up saying this address or that address uses $100 and gains $1 million but turns out it was an exchange address or just insanely lucky on his first few transactions but lost a ton of money on their next trades.

52Hz is one of the most famous on-chain analysis units in the Vietnamese crypto market and their analysis is quite clear and convincing. They are even highly appreciated by Arkham for their discoveries about the identities of large addresses in the market.

I have followed many of their posts and livestreams on Telegram, Youtube, and Twitter. I think I can temporarily trust what 52Hz is doing. Of course, my investment decisions do not only come from their opinions, they will still come from my own market analysis, but on-chain data helps me feel more confident when deciding to accumulate a potential token, with a bullish price pattern and strong accumulation by whales