@valerianae
How does on-chain activity predict Bitcoin market direction?
On-chain data reveals user behavior—transactions, wallet growth, active addresses. Rising activity often signals adoption and demand, bullish for price. Sudden spikes may indicate speculation or whale movement. Low activity suggests weakening interest. Analysts use metrics like NVT ratio, SOPR, and MVRV to measure valuation and behavior. On-chain trends provide real-time insights into market health. When combined with technical indicators, they form a strong predictive tool for both short- and long-term price movement.
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