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How to Use Coinalyze Crypto Data

By idiosyncratic | Idiosyncratic Crypto | 26 Feb 2024


If you are gathering data to understand the current position in the crypto market cycle, you may need to check several tools in addition to TradingView charts. First of all, on-chain data from Dune analyses can be a good source to see the performance of chains and dApps on it. Besides Dune, we may need some data to see the positions and the liquidations in the market.

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Coinalyze provides live data for crypto markets in terms of open interest, funding rates, liquidations, long / short distribution, and many other matrices. By using the historical data and current signals, you may be able to secure your portfolio from drastic drops or there might be a chance to catch a good spot to enter the market after a healthy correction.

There are some indicators to apply on open positions in Bitcoin.

Margin Contracts, Liquidations & CVD Data

We will start with the open positions to understand the interest in the market.

Here we can see the growth of the positions in stablecoin margin contracts. Actually, the recent candles show that the buyers are losing some power as we push hard to break magnificient 52K resistance of Bitcoin.

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After the open margin contracts and liquidations, I care about the CVD data as it indicates spot Bitcoin purchases on the centralized exchanges.

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The market has not liquidated a lot of contracts over the last 3 days. However, next week might be the first bullet to hit either short or long positions. Actually, I am waiting for a " healthy " correction to happen but, this may happen around $53K or $56K according to my expectation. The wise way is to start taking profit from the current levels, though 😅

On the side of Spot Bitcoin purchases on the markets, you can clearly see that CVD is going up.

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In the closer time frames, the chart goes up only. However, until the approval of spot Bitcoin ETFs, we had a down trend in the CVD data but the ongoing Bitcoin purchases are not by the retail investors, rather, they are done by the institutional investors 🔥

The indicators have a lot of things to say. My humble summary is that the market is still indecisive. The investors see that there is a massive buy pressure on Bitcoin but, on the other hand, nobody is eager to miss another leg of uptrend that can reach up to $56K in Bitcoin.

As there is still enough time to feel the global pressure on our markets via the central banks, I think I can take more risk by holding the bag without taking some more profit. There will be a lot of quarterly earning reports coming from the leading companies in the globe. Who knows, maybe we can see a slight push from that side.

What do you think about Coinalyze data for crypto market?

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idiosyncratic
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