Glassnode Introduces Breakdown Metrics to Identify Local Bottoms in Bull Market

Glassnode
Launches
28
New
Metrics

On-chain
market
intelligence
provider,
Glassnode,
has
released
a
suite
of
28
new
metrics
aimed
at
providing
a
more
granular
view
of
the
digital
asset
market,
according
to
a
recent

blog
post.
These
metrics
are
expected
to
be
a
game-changer
for
traders,
providing
detailed
insights
that
can
be
translated
into
potential
buy
and
sell
signals.

Identifying
Local
Market
Bottoms

One
significant
application
of
these
new
metrics
is
identifying
seller
exhaustion
across
different
age
cohorts
within
short-term
holders.
The
new
Breakdown
metrics
allow
traders
to
more
accurately
pinpoint
moments
of
severe
unrealized
loss
and
capitulation,
which
often
signal
local
market
bottoms
and
potential
entry
points
during
a
bull
market.
These
insights
are
crucial
for
traders
seeking
to
optimize
their
market
entries
or
Dollar-Cost
Averaging
(DCA)
strategies.

Focus
on
Short-Term
Holders

In
the
context
of
on-chain
analysis,
short-term
holders
represent
a
distinct
group
with
different
behaviors
and
market
impacts.
These
investors,
often
newer
entrants
or
speculative
traders,
are
more
sensitive
to
price
changes.
Their
analysis
is
particularly
valuable
for
identifying
local
market
bottoms
as
they
are
more
prone
to
selling
in
response
to
market
volatility.

Benefits
of
Breakdown
Metrics

By
breaking
down
the
short-term
holder
cohort
into
granular
age
bands,
the
metrics
help
traders
identify
periods
of
seller
exhaustion
more
effectively.
The
metrics
detect
capitulation
events
across
different
short-term
timeframes,
enhancing
the
likelihood
of
identifying
a
local
bottom.
This
inside-out
progression
provides
a
clearer
signal
of
potential
local
bottoms
and
subsequent
market
reversals.

Practical
Applications
for
Traders

The
new
Breakdown
metrics
can
offer
numerous
advantages
for
traders,
including
early
detection
of
local
bottoms,
optimized
DCA
strategies,
enhanced
market
timing,
and
strategic
flexibility.
By
leveraging
these
insights,
traders
can
gain
a
competitive
edge
in
the
market,
making
more
strategic
and
profitable
decisions.

Access
to
Glassnode’s
Breakdown
Metrics

The
breakdown
metrics
are
currently
exclusively
available
with
the
Glassnode
Enterprise
plan.
If
you’re
an
institutional
trader
or
investor
and
wish
to
leverage
these
metrics
to
gain
a
deeper
edge
in
trading
the
Bitcoin
and
Ethereum
markets,
you
can
contact
their
institutional
sales
team.

Image
source:
Shutterstock

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