Which on chain parameters are a must to watch?

[PercT4b]

I'm now realizing that on-chain analysis is a must to watch when it comes to understanding how this market is moving, but the number of parameters that are shown in various sites just got me easily confused.

So, in the shoes of a short-term trader (my timeframes range from daily trading to weekly trading) that, however, wants to get information about how the market is going to move in this period (this is, instead, more like a mid/long-term view), which are the parameters you check the most and you retain the most important?


P.S: Which on-chain analysis website do you retain to be better?

[Tytanowy Janusz]

So, in the shoes of a short-term trader

As a short term trader you need to look at price chart only. Onchain matrics does not work in short term, may work in longer term or may not work at all because 90% of volume comes from futures trading that does not even touch real bitcoin. So we leave in a word where the tail rules the dog not the oposite. Where futures price determines where spot is going to (and it does not relate to bitcoin only, same is with gold and other big assets).

Have you seen a decent study that proves that onchain metrics is a tool that a tool that produces repeatable results with a known probability? I havent. I only see a bunch of people that take random onchain indicator and build random predictions based on that, that sometimes are correct sometimes wrong.

[teosanru]

I'm now realizing that on-chain analysis is a must to watch when it comes to understanding how this market is moving, but the number of parameters that are shown in various sites just got me easily confused.

So, in the shoes of a short-term trader (my timeframes range from daily trading to weekly trading) that, however, wants to get information about how the market is going to move in this period (this is, instead, more like a mid/long-term view), which are the parameters you check the most and you retain the most important?


P.S: Which on-chain analysis website do you retain to be better?

I think the only good site for on-chain analysis is cryptoquant.com. They have some good analytics for traders, the simpler ones are free, the more valuable ones come with a monthly subscription, but I have felt some of the most important ones are

1. BTC./USDT on exchanges vs BTC/USDT on Private Key wallets (Called All exchanges Reserves & Netflow) : This gives you a hint whether miners have brought in their BTC to sell in the market or they have brought in USDT to buy some BTC or Alts.

2. Miner Flow: Generally miners are considered whales in crypto world so tracking their movement makes a lot of sense and gives you an idea about the whale action.

A few people also create indicators using this data, you might try that too but what will fit your trading strategy will obviously come with some hit and trial. 

[mk4]

I'd say the bitcoin inflows/outflows on the bigger exchanges is definitely a good metric to watch out for. But yea, this is probably going to be next to useless in terms of short term trading simply because the effects of exchange supply shocks can definitely take a good amount of time to be felt.

If you're really interested in on-chain analytics in general though, probably read Willy Woo's articles.

[BitMaxz]

which are the parameters you check the most and you retain the most important?

Mostly inflows and outflows as other mention above but this is a bit delay you will still need to check other indicators and some of them start from the news before we see big movement on in/outflows and other metrics.

Which on-chain analysis website do you retain to be better?

You can check https://glassnode.com/ you can use most of the metrics for free but if you want an advanced feature you will need to update to their paid plans.

Another tool is https://cryptoquant.com/ but they have only a few metrics compared to glassnode paid plans also get you some advantage and added metrics.