Bitcoin's price goes up and down, but there's more to it than just the price! We can look at Bitcoin's 'on-chain' data – information about all the Bitcoin transactions – to see what's really happening. This helps people understand if Bitcoin is a good buy or sell.
Think of it like watching a game – instead of just looking at the score, you're seeing all the players' moves! On-chain data gives us clues about what other Bitcoin owners are doing.
By studying this data, investors might get a better sense of whether Bitcoin is likely to go up or down in value.
- On-chain data shows the average cost of all Bitcoins.
- It helps predict when Bitcoin might be cheap or expensive.
- It tracks who's holding Bitcoin for a long time (these people are less likely to sell).
- It even helps spot when big investors are buying or selling.
| Metric | What it means |
|---|---|
| Realized Price | Average cost of all Bitcoins |
| MVRV Z-Score | Shows if Bitcoin is overvalued or undervalued |
| HODL Waves | Tracks how long people are holding Bitcoin |
