Bitcoin Indicators for Analysis (How to Evaluate Bitcoin Indicators)

What indicators are used for Bitcoin? According to bitcoinist, what indicators are used for Bitcoin? Statistical data can reveal the performance of Bitcoin in various aspects. According to data from Bitinfocharts, the average number of transactions on the Bitcoin network has surpassed the peak of 2017. Currently, the price of Bitcoin is around $53,000, with approximately 48,000 active user addresses per day, higher than the average daily transaction volume of other major cryptocurrencies in 2018. Therefore, what indicators can be used to judge the trend of the market and influence price fluctuations in the Bitcoin market?

How to Evaluate Bitcoin Indicators

How do Bitcoin indicators affect investors in situations with low volatility and relatively stable prices?

This article will use a simple chart to illustrate this phenomenon. There is a strong correlation between the price of Bitcoin and the traditional financial system, but it can also create some issues.

If you want to understand the basic principles of cryptocurrency and blockchain datasets or determine the effectiveness of their analysis methods, you should look at the data points of the network and assess them. What are Bitcoin indicators? The trading volume of Bitcoin is one way to measure the value of assets. It reflects the amount of BTC held by market participants and the demand for deposits on exchanges. When these numbers are greater than zero, it represents the liquidity of the Bitcoin market. This means that when a specific number is below $100, it is a sell signal.

However, over time, the increasing correlation may result in more funds flowing into this market.

Therefore, other indicators of Bitcoin can be considered, such as average price and on-chain movement trends, to determine the current trend of Bitcoin prices. For example, daily average trading volume/daily average price.

Bitcoin has accumulated around $100,000 per week. Assuming that the Bitcoin price has risen to above $11,000 over the past month (as of the time of writing), approximately 27,000 addresses have purchased more than 10,000 Bitcoins; however, it is still unclear how much money is locked in selling.

Nevertheless, Bitcoin still attracts attention from many people—because it seems to have no fundamental support or technical backing, nor does it provide clear market activities.

According to recent research published by Bitcoinist, only about 5% of people believe that cryptocurrencies will continue to grow. Although the sentiment of most Bitcoin enthusiasts is often optimistic, there were signs of declines for almost all major cryptocurrencies in the first quarter of 2020. A significant increase occurred from December 11, 2020, to the end of March 2019, followed by a recovery of growth.

Original article from bitcoinist.com, translated by the BluemountainLabs team. The English copyright belongs to the original author. Please contact the editor for Chinese reprinting.