Blockchain
Glassnode introduces breakdown metrics to identify local lows in the bull market
Glassnode launches 28 new metrics
According to a recent survey, on-chain market intelligence provider Glassnode has released a suite of 28 new metrics aimed at providing a more granular view of the digital asset market. blog post. These parameters are expected to be a game-changer for traders, providing detailed insights that can be translated into potential buy and sell signals.
Identification of local market fundamentals
A significant application of these new metrics is the identification of seller burnout across different age cohorts within short-term holders. Breakdown’s new metrics allow traders to more accurately pinpoint moments of severe unrealized losses and capitulations, which often signal local market bottoms and potential entry points during a bull market. This information is crucial for traders looking to optimize their market entries or DCA (Dollar-Cost Averaging) strategies.
Focus on short-term holders
In the context of on-chain analytics, short-term security holders represent a distinct group with different market behaviors and impacts. These investors, often new entrants or speculative traders, are more sensitive to price changes. Their analysis is especially valuable for identifying local market lows as they are more inclined to sell in response to market volatility.
Benefits of breakdown metrics
By breaking the group of short-term holders into granular age ranges, the metrics help traders identify seller exhaustion periods more effectively. The metrics detect capitulation events at different short-term time frames, increasing the likelihood of identifying a local bottom. This progression from inside to outside provides a clearer signal of potential local bottoms and subsequent market reversals.
Practical applications for traders
Breakdown’s new metrics can offer numerous benefits to traders, including early detection of local lows, optimized DCA strategies, improved market timing, and strategic flexibility. By leveraging this information, traders can gain a competitive advantage in the market by making more strategic and profitable decisions.
Access to Glassnode breakdown metrics
Breakdown metrics are currently only available with the Glassnode Enterprise plan. If you are a trader or an institutional investor and want to leverage these metrics to gain a deeper advantage in trading the Bitcoin and Ethereum markets, you can contact their institutional sales team.
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