Glassnode introduces analytical indicators to identify regional bottoms in bull markets

Glassnode launches 28 new indicators

Glassnode, an on-chain market intelligence provider, has launched a suite of 28 new metrics aimed at providing a more detailed view of digital asset markets, according to a recent blog post. These indicators are expected to be game-changing for traders by providing detailed insights that can be translated into potential buy and sell signals.

Identify local market floors

One important application of these new metrics is identifying seller fatigue across different age groups within short-term holders. New analytical indicators allow traders to more accurately pinpoint significant unrealized losses and moments of surrender. This often signals a local market bottom and potential entry point during a bull market. These insights are important for traders looking to optimize their market entry or dollar cost averaging (DCA) strategies.

Focus on short-term holders

In the context of on-chain analytics, short-term holders represent a distinct group with different behaviors and market impacts. These investors, who are often new entrants or speculative traders, are more sensitive to price changes. Their analysis is particularly useful in identifying local market bottoms because local markets are more likely to sell in response to market volatility.

Benefits of Analytics Metrics

By segmenting the short-term holder population into granular age ranges, the indicator helps traders more effectively identify periods of seller exhaustion. The metric detects yield events over a variety of short-term time periods, increasing the likelihood of identifying local bottoms. These internal developments provide a clearer signal of a potential local bottom and subsequent market reversal.

Practical Applications for Traders

The new classified indicator can offer numerous benefits to traders, including early detection of local bottoms, optimized DCA strategies, improved market timing, and strategic flexibility. By leveraging these insights, traders can gain a competitive advantage in the market and make more strategic and profitable decisions.

Access to Glassnode’s analytics metrics

Analytics metrics are currently only available on the Glassnode Enterprise plan. If you are an institutional trader or investor and would like to leverage these indicators to gain a greater edge in trading the Bitcoin and Ethereum markets, you can contact their institutional sales team.

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