On-chain analysis for bots
Predict trends to set up bots properly
On-chain analysis can be useful to study money flow and trends before they happen. There are a few indicators to keep an eye on, and here you can find the most useful. I use CryptoQuant free, but there are plenty of software for on-chain anaysis.
For example, before setting a grid bot, you can check if the market could retrace in the weeks to go.
All miners reserve
This indicator keeps trace of how miners behave compared to the coin trend. The increasing value of the violet line shows that miners confidence towards Bitcoin is growing, and thery are accumulating them in their private wallets instead of selling it on exchanges.
All exchanges estimated leverage ratio
Simply put, this indicator show how much positions on exchanges are opened with leverage (margin, futures...). This information measures traders' sentiment whether they take a high risk or low risk. An higher leverage usually corresponds to higher volatility and major price instability, while a lower leverage is the opposite. Usually price pumps or dumps arise from position squeezes triggering an avalanche effect.
MVRV ratio
The MVRV ratio can tell us to get a sense of whether the price is fair or not, which means it is useful to get market tops and bottoms.
It is important to note that historically, it has been an outstanding indicator to spot market top/bottom or local top/bottom that occurred through three halvings.
Usually, values near 1.6 or below state a price bottom, while a values near 3.6 or above state a price top.
Pay me a coffee :-)
I realized this website mostly for passion, encourage me to produce more content! These are my crypto public wallet USDT: ​
​