BTC Indicators You Aren’t Using!! This Report REVEALS Them All!

There are many indicators you can use to Get an edge in the crypto Market the Problem is that the more an indicator is Used well the less of an edge you get Because everyone else is seeing the same Thing so the solution is to use new Indicators that sharpen your Edge so to Speak well as it so happens glass node And Arc invest recently proposed a new Approach to on-chain analysis that could Do just that today we're going to Summarize their report on this reveal Just how useful this new approach to On-chain analysis could be and tell you What it could mean for Bitcoin The report we'll be summarizing today is Titled quote coin time economics a new Framework for Bitcoin on-chain analysis It was published by glass node and Arc Invest late last month and we'll leave a Link to the full report in the Description note that you'll have to Enter some personal details Now the report Begins by revealing that Glass node and Arc invest have been Working on this new framework for almost Two years The authors also underscore the fact That this framework is brand new so it Should quote not be relied upon as a Basis for any investment decision in Other words not Financial advice With that disclaimer out of the way the Authors introduced the concept of coin

Time economics this involves measuring The supply and demand for BTC using a New measure called coin blocks The authors claim that this approach Makes it possible to provide a more Accurate assessment of btc's current Value but what exactly is coin time Economics well the authors explain that It's a framework which assumes that the Importance of a BTC transaction Ultimately depends on the last time it Moved so for example a BTC which was Last moved 10 years ago is more Important than a BTC that was last moved One week ago now I should note that this Idea isn't new it's already widely known In the crypto community that large Movements of coins or tokens from very Old wallets are much more significant Than large movements from newer wallets The question is just how significant They are and this report provides the Answer now the authors note something Else that's very important and that's That the coin time economics framework Does not count lost BTC in its analysis For content next most crypto analysis Does include lost BTC in its Calculations which can result in Questionable outcomes given that almost A third of BTC has been lost more about Lost BTC in the description I digress This ties into the second concept and That's the coin blocks measurement so

The coin blocks measurement is more Straightforward as a calculation the Number of BTC held times the number of Bitcoin blocks this BTC has been held For equals coin blocks so if you held One BTC for 10 blocks the coin blocks Would be 10. I should note that this Idea isn't new either on-chain analytics Platforms of all kinds already track how Long it's been since a BTC was last Moved the thing is that they track this Based on the number of days or even the Dollar value of BTC over some period This report looks specifically at the Number of blocks the result is that one BTC that's held for one day results in Roughly 144 coin blocks because roughly 144 Bitcoin blocks are produced per day The authors note that there have been Over 2.7 billion coin blocks since the First Bitcoin block was mined the image They provide reveals why this measure is Significant as you can see the number of Coin blocks correlates almost perfectly To btc's price though the correlation Seems to have broken down during the Most recent bull market regardless it's Incredible to see that the coin blocks Measurement tracks btc's price so Closely they're definitely on to Something This relates to a third concept the Authors propose and that's coin blocks Destroyed the authors explained this

Concept quite well quote whenever a coin Is moved it destroys all accumulated Coin blocks up to that point in time Resetting its coin time back to zero That's coin blocks destroyed so for Instance if you held one BTC for 10 Blocks giving that BTC 10 coin blocks And you then decided to move this BTC Then those 10 coin blocks are destroyed Not literally but from an important Perspective the author's reasoning for This is that the moment a BTC is moved Its importance goes back to zero they Contrast this with other existing Methods of tracking how long BTC has Been held such as huddle waves which Assume that every BTC has the same Importance again the core thesis of coin Time economics is that each btc's Importance varies depending on how many Coin blocks it has and as with the Number of coin blocks the authors also Looked at how many coin blocks were Destroyed since the first Bitcoin block Was mined they note that lots of Coin Block destruction means that long-term Holders and smart money are selling as a Result Coin Block destruction correlates To btc's price Peaks as you can see the Number of coin blocks destroyed also Tends to spike when btc's price crashes What's fascinating is that there was Almost no Coin Block destruction when BTC hit its second top in November 2021.

This could be evidence of the theory That the second rally was manipulated in Some way in any case the authors then Present a fourth concept and that's Coinblocks stored as you might have Guessed coinblocks stored is quote the Difference between total coin blocks Created and total coin blocks destroyed Now explaining this concept requires a Slightly more elaborate example so Suppose that you've held one BTC for 10 Blocks 10 coin blocks but your friend Held one BTC for 10 blocks before moving It 10 coin blocks destroyed assuming you And your friend were the only BTC Holders during this 10 block period the Coin blocks stored would be 10 since You're the only one who held good on you Make sure you're using a hardware wallet Though linked to our discounts on them In the description Now as with the number of coin blocks Destroyed the authors explained that the Number of coin blocks stored has a very High correlation to btc's Peaks and Troughs as seen in this image here When the number of coin blocks stored Goes below zero chances are that BTC is Hitting its high or its low The authors then finish off this section By adding up the total number of coin Blocks created the total number of coin Blocks destroyed and the total number of Coin blocks stored as you can see the

Total number of coin blocks destroyed Started outpacing the total number of Coin blocks stored in 2017. what this Suggests to the authors is that more Bitcoins started becoming active around This time What this suggests to us is that more Institutions started becoming active in BTC around this time something that's Been detected by other forms of analysis Namely technical analysis Allah Wykoff And you can learn more about the Wyckoff Method using the link in the description Moving on Now this begs the question of how all This coin time economic stuff can be Used and that's what the second part of The report is all about The authors start by introducing two More Concepts liveliness which measures How active the Bitcoin network is and Vaultedness which measures how dormant It is in the context of coin time Economics liveliness is measured by Dividing the total number of coin blocks Destroyed by the total number of coin Blocks created whereas vaultedness is Measured by dividing the total number of Coin blocks stored by the total number Of coin blocks created obviously the Authors put all of this on a graph too Like the previous graph it appears that The Bitcoin Network became more lively After the 2017 bull market and this

Liveliness seems to be increasing This is concrete evidence against the Widely circulated claim that most of the BTC in circulation is dormant now the Authors go on to add two additional Concepts a lot to keep track of I know These two concepts are active Supply Which is measured by multiplying the Supply of BTC by liveliness and voltage Supply which is measured by multiplying The supply of BTC by vaultedness under These measurements sixty percent of Btc's Supply is active whereas forty Percent of btc's Supply is dormant the Resulting graph is almost identical to The one for liveliness and vaultedness But the key takeaway is that the Bitcoin Network is more active than people think Even though lots of it is in fact Inactive The authors highlight the difference Between coin time economics and Analogous approaches to on-chain Analysis by looking at how they measure The BTC held by miners the key takeaway Here is that analogous approaches to On-chain analysis significantly under Count how much miners are hodling BTC This pertains to the third part of the Report wherein the authors propose using Coin time economics in three ways To improve analogous on-chain analysis Measures to improve on-chain based Economic models and to create new

On-chain and economic models based Entirely on coin time economics The analogous on-chain analysis measure The authors use is the market value to Realize value ratio or mvrv which Basically measures how overvalued or Undervalued BTC is The authors note that the accuracy of The mvrv has decreased over time as Evidenced by the diminishing data Variation however if you add coin time Economics into the mix then the mvrv Regains some of its accuracy the Specific coin time economics the authors Sprinkled in is called active cap to Investor cap or Aviv which is outside The scope of this video it essentially Gives a clearer picture of btc's over or Under valuation the on-chain-based Economic model the authors use is btc's Inflation rate the authors argued that Traditional measures of btc's inflation Rate might be under counting its Inflation this makes sense considering That under coin time economics this Inflation rate only applies to BTC that Hasn't been lost When you exclude the amount of BTC That's been lost which coin time Economics does by using that Aforementioned vaultedness measure the Result is a BCC inflation rate that's Closer to 2.5 percent For reference it's generally believed

That btc's inflation rate is only around 1.5 percent not only that but the coin Time economics assessment of btc's Inflation is more Dynamic meaning that It can change depending on how Lively or Vaulted the Bitcoin network is as Measured by BTC Supply This makes that aforementioned increase In liveliness that much more significant It increased inflation as for novel on Chain and economic models based on coin Time economics the authors provide one Coin time price this economic model Provides a clearer picture of just how Low BTC could go across crypto cycles For those unfamiliar the analogous Economic measure is called realized Price Btc's theoretical low was somewhere Around 17K according to coin time price Whereas it was closer to 20K according To realize price I say was because the Authors gathered this data back in May Today the realized price is still Hovering around 20K the coin time price Is presumably still around 17K too What this suggests is that traditional Methods of measuring things like btc's Fair value and its lows across Cycles Could be inaccurate due to their faulty Assumptions in fact they could be Overestimating btc's fair value and lows Something to keep in mind if you're Relying on these traditional indicators

If you're wondering what all these Traditional indicators are we'll leave a Link to our video about on-chain Analysis in the description for your Convenience So then what does this mean for Bitcoin And the broader crypto Market well for Starters it suggests that investors Particularly institutional investors are Still trying to understand how to Value Bitcoin recall that Arc invest worked With glass node on this report Of course BTC is typically considered to Be analogous to digital gold but that Really just scratches the surface of What Bitcoin is Bitcoin itself is a Blockchain and it's technically the most Secure blockchain in the world The blockchain itself is a ledger a Network that you can use as a base layer For other networks Analyzing what's happening on this Network is therefore arguably the best Way to assess its value in this case Btc's value this would explain why Institutional investors seem to be Increasingly focused on the on-chain Aspects of crypto and it suggests that We retail investors should start Focusing on them too but as we've seen Today the on-chain indicators we have Currently aren't nearly as accurate as They seem to be again this is Fundamentally because they're based on

Faulty assumptions The assumptions themselves are likely Rooted in the bias that BTC holders have And that's not good Now if you're still watching this video Then chances are that you've been Relying on established on-chain and Economic indicators for your crypto Analysis at least in part Chances are that many of these on-chain And economic indicators have been Violated proven wrong the stock to flow Model comes to mind What all these models are missing is Something that creators of coin time Economics understand the Bitcoin network Has evolved over time and this Evolution Will continue the fundamental flaw that All the established on-chain and Economic indicators have is that they Fail to account for this evolution Put simply indicators like realize price Are static whereas indicators like coin Time price are Dynamic that's probably The most important takeaway from this Entire report so if you want to get an Edge in the crypto Market you need to Use indicators that account for the Changes in crypto networks over time as We've seen this is difficult to do for Bitcoin and that's a bit scary because Bitcoin is the least complex crypto Project at least compared to its biggest Peers this means that established

On-chain and economic indicators are Probably even less accurate when applied To most altcoins it also means that Indicators like coin time price could Likely be insufficient for analyzing Their true value now the Silver Lining Is that if you're aware of this fact Then it'll give you an edge in the Crypto Market simply because you're not Blindly following all the same Established indicators that other crypto Traders are and you can turn this Silver Lining into a gold lining if you're Clever enough to find new ways to Measure value for different coins and Tokens as we've seen these new ways of Measurement don't need to be complex to Be effective they're based on basic Maths that only gets complex if you Expand the idea and the best part is That you don't need brains to do this All you need is perspective so next time You find a Coin or token that you like Try and look at it from different angles And ask yourself how the price could Change as that particular angle evolves The crypto Niche that comes to mind here Is defy take a second to consider that D5 protocols generate the most fees of Any crypto projects outside of Bitcoin And ethereum The only reason why their respective Tokens haven't mooned is because they Haven't been able to capture this value

What would happen if buyback mechanisms Were introduced it's something to think About and if you want other crypto Niches to look at and think about be Sure to check out our video about the Crypto niches to watch for the next bull Market the link to that will be in the Description And that's all for today's video so if You learned something new Smash that Like button to let me know if you want To keep learning be sure to subscribe to The channel and ping that notification Bell if you want to help others learn Take a second to share this video with Them especially if they're into crypto If you're not keen on indicators and Economic models and just prefer huddling Make sure you're accumulating using Affordable exchanges and storing your Crypto securely the coin Bureau deals Page happens to have up to forty Thousand dollars in airdrops and bonuses On the best crypto exchanges and the Biggest discounts on the best hardware Wallets the link will be down in the Description thank you all so much for Watching and I'll see you next time till Then stay cool stay out of trouble and Stay crypto Thank you

Coinbase
OUR TAKE

Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

Leave a Comment

    • bitcoinBitcoin (BTC) $ 67,319.00 3.41%
    • ethereumEthereum (ETH) $ 3,687.74 3.44%
    • tetherTether (USDT) $ 0.999374 0.08%
    • bnbBNB (BNB) $ 595.41 2.67%
    • solanaSolana (SOL) $ 165.12 6.07%
    • staked-etherLido Staked Ether (STETH) $ 3,683.72 3.52%
    • usd-coinUSDC (USDC) $ 0.999516 0.01%
    • xrpXRP (XRP) $ 0.522561 0.47%
    • dogecoinDogecoin (DOGE) $ 0.158959 4.29%
    • the-open-networkToncoin (TON) $ 6.19 4.14%