On-chain analysis December 2021
- arnie1899
- Dec 6, 2021
- 1 min read
MVRV
From CryptoQuant: https://dataguide.cryptoquant.com/market-data-indicators/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. Usually, a value near 3.5 is a possible market top (sell sign), while a value between 1.5 and 2 is a possible market bottom (buy signal). On a bigger timespan we can note that these values could be used to foresee the last dump:
BTC exchange reserve
The total amount of reserve held in all exchanges is a measure of potential to sell on the market. Therefore, the increase of All Exchanges Reserve indicates growing sell power in Bitcoin. A decrease in reserve occurs when a large number of bitcoins flow out of all exchanges; hence the price is likely to go up due to a sell-side liquidity crunch. As we can see, holding is increasing rather than speculation on Bitcoin.
ETH exchange reserve
It can be stated a similar situation to the one for Bitcoin: Ether holders are increasing.
For other on-chain tools, check the page:
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