On-chain refers to any transactions or activities that occur on the blockchain itself. This means that the activity is recorded on the blockchain and can be publicly verified. This is in contrast to off-chain transactions, which occur outside of the blockchain and may not be publicly verifiable. On-chain transactions are generally considered to be more secure and transparent than off-chain transactions. In the context of cryptocurrency, on-chain transactions refer to any transactions that are conducted using a cryptocurrency and recorded on the blockchain.
On-chain analysis is the process of examining transactions and other activities that are recorded on the blockchain. This may include analysis of the volume of transactions, the value of those transactions, and patterns of activity on the blockchain. On-chain analytics can provide insight into the health and usage of a cryptocurrency, as well as help identify trends and potential issues. It can be done using a variety of tools and techniques, including visualizing transaction data and using statistical analysis to identify patterns. On-chain analytics can be used by a wide range of stakeholders, including investors, researchers, and regulators.
After the theory, the practice: The onchain indicator called MVRV Z-Score, is performing a figure very similar to previous bullish pre-movements.
We have to think if this time it will be the same again, but it is possible that it will repeat the same thing. It is the good thing about the onchain analysis, which as a rule, it does.
The movements produced from the support zone, from the ground, are perfect for investors who think about their long term.
The onchain analyzes have come to help, above all, small investors, so that they stop being small fish and understand what can or could happen from now on.
Bitcoin Profitable Days?
Number of days in Bitcoin’s traded history where holding Bitcoin has been profitable relative to today’s price.
This chart highlights the aggressive growth of Bitcoin’s adoption curve over time, which is reflected in its price. Because supply is limited, as demand grows price moves up.
For investors, it also demonstrates the importance of understanding the market cycles of Bitcoin to avoid buying market cycle tops. The drawdowns from cycle tops can last a long time, around 2-3 years in previous cycles.
In the following graph, after more than a year since the start of the crypto winter, we will be able to see how green shoots begin to appear, the beginning of the possible current support, of the crypto spring. Therefore be prepared, since the volatility of bitcoin always returns and equally when it goes down, it goes down hard and fast, when it goes up, it can do it, in a surprising way, and strong.
Not Financial Advice.