Thread by @ScalperDaddy

#Bitcoin ON-CHAIN ANALYSIS

Preface, I am not an on-chain analyst I have no interest in going to view rainbows or data that is useless to me.

I want to Focus in going to 360 degree look at what is going on and will be happy to read any thoughts below.

👇👇👇

This Thread will be very long and divided into 12 parts,
For each part there will be a brief explanation of the chart we are looking at and my separate observation if needed.

This data is taken from the look into #bitcoin site accessible to all.

👇👇👇👇

1/12

This tool analyzes a group of market participants to understand their behavior and identify their potential impact on the price of #Bitcoin.

(Picking up address in photo 3*)

2/12

The key principle of this tool is in the relationship between market capitalization and investors in #Bitcoin taking profit.

When market capitalization increases much faster than profit taking, we see that the market is overheating, one might say because of investor greed.

3/12

For the strategic investor these times have historically been favorable for profit taking.

Looking at the image we can see a large divergence between May and November marked in red and blue, and capitulation with a good margin to create another one in the coming months.

4/12

Here the situation becomes quite critical, we see how addresses that have been dormant for + 10 years are taking profits on important lows. this indicator shows how smart money is moving, the question is: smart money but in the wrong hands? or do they know something more?

5/12

The number of addresses on the #Bitcoin blockchain that have sent or received transactions

This is a metric to be tracked over time that shows the amount of activity taking place on the network. As #Bitcoin is adopted over time, the number of active addresses increases.

6/12

Here again we can see how since May there has never been a return to the activity of that time period.
November all time high has created a huge divergence. THE MARKET HAS BEEN PUMPED BY THE FUTURES!

7/12

Real-time #bitcoin chart showing the number of unique addresses holding at least 10 #BTC in the first picture, and 1 #BTC in the second.

And even here we can see how large entities are selling and retail are continuing to create new all-time highs.

8/12

#Bitcoin hashrate is a metric related to the mining process, which protects the network and also confirms the correctness of transactions on the #blockchain.

If the #hashrate on the #Bitcoin network is high this indicates that the network is secure and robust.

9/12

Large drops in hash rates can represent changes or risks to the network. In bearish markets, some #miners may have difficulty generating profits and will shut down their mining facilities. On a large enough scale, this significantly reduces hashrate.

10/12

The #Bitcoin Hash Ribbon indicator seeks to identify periods when #Bitcoin #miners are in trouble and may capitulate.

The assumption is that such periods may occur when the price of $BTC is at major lows and may therefore present a good opportunity to buy the drop.

11/12

As we can also see from this chart, there is still a long way to go, and it looks like it will be very tumultuous and full of pitfalls. security is growing, usage too.

follow the next module and I will make my final remarks

12/12

Final Consideration

Networking and adoption continue undaunted away from #speculation and prices.

#Miners begin the second wave of major labors, #Europe could play a key role in this.

#Retailers are buying the dip, OG #Whales are moving their bitcoins from early cycle.