Last day I stumbled upon the new Issue 80 of the "State of Network" report published by the Coin Metrics team, which I follow regularly.
As always the report has some interesting statistics of Bitcoin network, which I always find helpful and informative:
This time around I found out they had published a primer on on-chain valuation metrics, which may have a good market price prediction value. This was a most comprehensive and informative reading I have seen lately. I would urge everyone to read and follow the development of the metrics. I do strongly prefer fundamental analysis as a stronger alternative to technical analysis in taking decisions about Bitcoin and crypto. This primer is offered absolutely free for everyone and could be downloaded here:
The Coin Metrics Bitcoin On-Chain Indicators Primer
The data used is entirely based on the bitcoin blockchain, which is entirely public and available for everyone. The primer develops five major on-chain indicators:
- Market Value to Realized Value
- Spent Output Profit Ratio
- Relative Unrealized Profit
- Market Cap to Thermocap
- Hodl Waves Chart
The author of the report claims that these indicators can tremendously help in performing fundamental analysis of Bitcoin. I found the reading to be greatly informative and I continue to follow each new issue by the Coin Metrics team.
I do believe every one would find the reading helpful, insightful and informative. Happy HODLing!
