@ariesdulles
To identify market tops and bottoms using on-chain data, analyze metrics like:Exchange Flows: High inflows to exchanges often signal tops (selling pressure), while outflows suggest bottoms (accumulation).
Active Addresses: Rising active addresses indicate growing interest (potential bottom), while declining activity may signal a top.
Transaction Volume: Spikes in volume can precede tops (profit-taking) or bottoms (capitulation).
HODL Metrics: Increased long-term holding (high HODL ratio) often marks bottoms; low HODL ratios may indicate tops.
Realized Cap: A rising realized cap suggests accumulation (bottoms), while stagnation can signal tops.
MVRV Ratio: High MVRV (market value/realized value) indicates overvaluation (tops); low MVRV suggests undervaluation (bottoms).
Funding Rates: Extreme positive funding rates hint at tops; negative rates may signal bottoms.
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