Back to Blog

CryptoQuant On-Chain Analysis: A Complete Guide for Crypto Traders

2026-01-21

You're staring at your chart. Bitcoin is bouncing between $94,000 and $96,000. Volume is all over the place. RSI shows oversold, but MACD is still bearish. Your technical indicators are giving you mixed signals. Half the people on Crypto Twitter are screaming "bull run incoming" and the other half are yelling "get out now."

You might be asking yourself: is there data that cuts through all this noise? Is there a way to see what smart money is actually doing instead of listening to what retail traders are shouting?

That's the value of on-chain analysis. And among on-chain analysis tools, CryptoQuant has become the go-to platform for serious traders.

Why On-Chain Analysis Matters

The Limitation of Traditional Market Data

Crypto markets are fundamentally different from traditional financial markets. In the stock market, you have:

  • Earnings reports: Companies disclose financial performance quarterly
  • Regulatory filings: Insider buying and selling must be reported publicly
  • Institutional holdings: You can see what funds and institutions own
  • Short interest data: You know how many people are short a stock

This data gives you visibility into market participant behavior.

What's Different in Crypto

Crypto markets work differently:

  • Most trading happens off-exchange: Large trades occur OTC, never showing up in public order books
  • Anonymous holders: Unless it's an exchange address, you don't know who owns most wallets
  • No mandatory disclosures: Whales buy or sell 10,000 BTC without telling anyone
  • 24/7 global trading: No unified market hours, large trades can happen anytime

When you only look at price charts, you're seeing the tip of the iceberg. The real money flows—the underwater iceberg that actually drives price movements—you don't see.

Blockchain's Transparency Advantage

But crypto has one advantage traditional finance doesn't: every transaction is recorded on-chain, publicly accessible.

This means:

  • Every Bitcoin transfer—from which address to which address, how much, the timestamp—is public
  • Every wallet balance can be queried with full history
  • Every deposit to an exchange is visible on-chain

If you know how to interpret this data, you see things regular investors don't. You can see:

  • Whether Bitcoin on exchanges is increasing or decreasing
  • Whether long-term holders are accumulating or distributing
  • Whether miners are selling or holding
  • Whether new capital is flowing in from outside the market

On-Chain Analysis Isn't a Crystal Ball

Let me be clear: on-chain analysis won't predict what price will do tomorrow.

But it tells you about current market structure and state:

  • Is supply concentrating or dispersing?
  • Are holders accumulating or distributing?
  • Is the market showing greed or fear?

This information helps you make better decisions. While others are looking for golden crosses on their charts, you know supply is decreasing and long-term holders are accumulating. That's an information edge.

CryptoQuant: Making On-Chain Data Accessible

Raw blockchain data is hard to use directly. You need to:

  • Know how to code to query blockchain nodes
  • Understand database operations
  • Have significant storage for historical data
  • Know how to clean and visualize data

That's too high a barrier for most traders.

CryptoQuant solves this. It's an on-chain data aggregation and analysis platform that collects blockchain data for Bitcoin, Ethereum, and other major cryptocurrencies, organizes it into visual charts and indicators, and gives you access to professional-grade on-chain insights without writing a single line of code.

Founded in 2018, CryptoQuant has become a standard tool for institutional investors, quantitative traders, and serious individual traders. But you don't need to be an institution to benefit—the individual tier provides more than enough functionality to improve your trading decisions.

CryptoQuant's Core Indicators

CryptoQuant offers over 100 indicators, but these are the ones that actually matter. Let me explain each in detail.

Exchange Inflows and Outflows

How the Indicator Works

This is the most fundamental indicator. The logic is simple:

  • Bitcoin flows into exchanges → holders transfer BTC to exchanges → likely preparing to sell → increases selling pressure
  • Bitcoin flows out of exchanges → holders withdraw from exchanges → moving to cold storage for long-term holding → decreases available supply

But this requires nuanced interpretation. It's not simply "inflows = bad, outflows = good."

How to Correctly Interpret Inflows

Scenario 1: Inflow Surge + Price Decline = Strong Sell Signal

When exchange inflows spike to 2-3x the 30-day average and price is simultaneously declining, that's clear selling pressure.

Example: March 2024, Bitcoin exchange inflows surged from 5,000 BTC daily average to 15,000 BTC, while price declined from $68,000. Three days later, Bitcoin dropped to $59,000. Traders who noticed this signal had a chance to reduce exposure or buy protective puts early.

Scenario 2: Inflow Surge + Price Stability = Strong Buying

When inflows are high but price is stable or rising, there's sufficient buying demand to absorb the selling. This might not be bad—increased exchange liquidity can actually support further price increases.

Example: October 2023, single-day inflows of 12,000 BTC, but price stabilized around $34,000. The following month, Bitcoin rose to $42,000. Large inflows were absorbed by institutional buying.

Scenario 3: Normal Inflows + Rising Price = Healthy Uptrend

When inflows are within normal ranges and price is rising, the uptrend is sustainable. This is price appreciation driven by natural supply and demand, not a leverage bubble.

How to Correctly Interpret Outflows

Sustained Outflows = Supply Contraction

When Bitcoin on exchanges consistently declines, it often signals tightening supply. Less tradable Bitcoin means even unchanged demand can push prices higher.

Example: October 2020 to April 2021, exchange Bitcoin holdings fell from 2.4 million to 2.2 million. This 400,000 BTC net outflow occurred during the bull market launch phase, driving prices higher.

Outflow Spikes = Whale Activity

Large single-day outflows (like over 10,000 BTC) are usually whales or institutions moving Bitcoin to cold storage. This is typically bullish—big players are holding long-term.

Practical Checklist

Spend 2 minutes daily checking this indicator:

  • Are 24-hour inflows/outflows more than 2x the average? (anomaly signal)
  • Is the 7-day cumulative flow net inflow or net outflow? (trend judgment)
  • Is the 30-day trend in exchange holdings increasing or decreasing? (long-term supply/demand)

Active Addresses

How the Indicator Works

Active addresses refer to the number of unique addresses that sent or received cryptocurrency within a specific timeframe (usually 24 hours). This indicator tells you about genuine market participation.

Price-Address Divergence

Rising Price + Declining Addresses = Warning Signal

This means the price rise is driven by a small number of participants, possibly lacking broad support. Such rallies are often unsustainable.

Example: May 2021, Bitcoin rose from $50,000 to $59,000, but active addresses declined from 1 million to 900,000. A week later, Bitcoin crashed to $30,000.

Falling Price + Rising Addresses = Bottom Signal

This indicates new capital is entering even as price declines. New participants typically signal a bottom might be approaching.

Example: November 2022, Bitcoin fell to $15,500, but active addresses increased from 800,000 to 1.1 million. Three months later, Bitcoin began a strong rally.

Indicator Limitations

This indicator isn't perfect:

  • Address ≠ User: One whale can split holdings across 100 addresses, looking like 100 different people
  • Exchange internal transfers: Hot wallet to cold wallet transfers get counted as active addresses, but aren't real user activity
  • Mixing services: Some traders transfer between addresses to obfuscate trails, artificially inflating active address counts

Don't rely on this indicator alone. Use it as a supporting tool, combined with other indicators.

Long-Term Holder Behavior

What Are Long-Term Holders

CryptoQuant defines "long-term holders" as addresses holding Bitcoin for more than 155 days without moving. This isn't arbitrary—155 days is about 5 months, sufficient to filter out short-term speculators and keep only genuine long-term investors.

Why This Indicator Matters

Long-term holders are the most committed holder group in the market. They've been through bull and bear cycles and haven't panic-sold due to price volatility. When these people are selling, it means the market's strongest support is leaving. That's a dangerous signal.

Conversely, when long-term holders are accumulating, it means even during price declines or consolidation, true believers haven't wavered. This is typically a medium-to-long-term bullish signal.

Historical Examples

2021 Top Signal

April 2021, long-term holder supply peaked at approximately 14 million BTC (about 67% of total supply). Then it began slowly declining. By November 2021, it fell to 13.5 million.

During this period, Bitcoin fell from $64,000 to $29,000, then rebounded to $69,000. But long-term holders continued selling throughout the rally. Traders who noticed this signal avoided the major crash after $69,000.

2022 Bottom Signal

November 2022, long-term holder supply began rising, from 13.2 million to 13.5 million. This showed that even as prices crashed, long-term holders were buying at the bottom.

Three months later, Bitcoin began rallying from $15,500, eventually reaching $31,000.

2025 Accumulation Phase

March to August 2025, long-term holder supply increased from 13.5 million to 14.2 million BTC, adding 700,000 BTC. During this period, price ranged between $55,000-$65,000. Seemingly uneventful, but long-term holders were heavily accumulating.

October 2025, Bitcoin broke above $70,000, launching a new uptrend.

How to Use This Indicator

  • Check the 7-day change in long-term holder supply weekly
  • When supply consistently increases, lean toward holding or buying on dips
  • When supply consistently declines, increase caution, consider reducing exposure or hedging
  • Don't make decisions based on single-day changes—look at trends, not noise

Miner Indicators

Why Miner Behavior Matters

Miners are unique participants in crypto markets: they have to sell.

Unlike holders who can choose to hold or sell, miners have fixed operating costs:

  • Electricity (usually the largest cost)
  • Mining equipment maintenance
  • Personnel and facility rent
  • Financing costs (if they borrowed to buy miners)

This means miners need to regularly sell some Bitcoin to cover costs. When miner selling spikes, it increases market supply and suppresses price. When miner selling is low, it indicates miners are holding, bullish on future price.

CryptoQuant's Miner Metrics

Miner-to-Exchange Transfers

This indicator tracks the amount of Bitcoin transferred directly from miner addresses to exchanges. When this indicator is unusually high, miners are actively selling.

Miner Reserves

Total Bitcoin held in miner wallets. When reserves are increasing, miners are holding. When decreasing, miners are selling.

Miner Unspent Outputs

Bitcoin miners have mined but not yet transferred. This indicator increasing shows miners are holding; decreasing shows miners are selling.

Historical Examples

May 2021 Miner Selling

May 2021, China announced a crackdown on Bitcoin mining. Miners were forced to shut down and needed to sell their Bitcoin to pay electricity bills and repay loans.

Miner-to-exchange transfers surged from 300 BTC daily average to 2,000 BTC. Bitcoin fell from $50,000 to $30,000.

November 2022 Miner Accumulation

November 2022, Bitcoin fell to $15,500. Miner reserves began increasing, from 1.8 million to 1.9 million. This showed miners accumulating at the bear market bottom, bullish on the future.

Three months later, Bitcoin began a strong rally.

Miner Behavior After Halving

Bitcoin halves every four years, cutting miner revenue in half. After halving, miner behavior fundamentally changes:

  • High-cost miners forced out: Miners with high electricity costs become unprofitable, must sell equipment or shut down
  • Efficient miners survive: Low electricity cost, new equipment miners continue operations
  • Short-term selling pressure: Even if bullish long-term, some miners need to sell inventory to maintain operations

Therefore, increased miner selling after halving isn't necessarily a bearish signal—it could be survival necessity. You need to distinguish:

  • Selling because they don't believe in price (bearish)
  • Selling because they need to pay operating costs (neutral)

MVRV Ratio

What MVRV Is

MVRV stands for Market Value to Realized Value—the ratio of market value to realized value.

Market Value: Current price × Total supply. For example, Bitcoin at $95,000 with 19.6 million supply = $1.862 billion market value.

Realized Value: Sum of the price each Bitcoin last moved at on-chain. Think of it as "market average cost."

MVRV = Market Value / Realized Value

What MVRV Means

MVRV = 1: Market price equals market average cost. This means most holders are at break-even. This typically happens in long-term bottom zones because losing holders have sold and remaining holders' cost is close to current price.

Example: November 2022, Bitcoin MVRV dropped to 0.98, price $15,500. This was indeed a long-term bottom.

MVRV = 2-3: Market price is 2-3x average cost. Most holders are profitable. This is normal bull market state, not extreme.

MVRV = 3-4: Market price is 3-4x average cost. Most holders have significant profits. This is over-speculation zone, historically often marking tops.

Example: April 2021, Bitcoin MVRV reached 4.2, price $64,000. Two months later, price fell to $29,000.

MVRV < 1: Market price is below average cost. Most holders are underwater. This is oversold zone, typically a long-term buying opportunity.

Example: November 2022, MVRV fell to 0.8. Three months later, Bitcoin rose from $15,500 to $31,000.

MVRV Limitations

MVRV is useful but be aware:

  • It's a lagging indicator: When MVRV reaches 4, price might have already peaked and started declining
  • It performs differently in cycles: After long bear markets, MVRV=2 might be overvalued. After long bull markets, MVRV=3 might not be extreme
  • It needs combination with other indicators: Using MVRV alone can lead to wrong calls

Practical Strategy

Trading strategy based on MVRV (needs confirmation from other indicators):

  • MVRV < 1: Consider buying on dips, build positions gradually
  • MVRV = 1-2: Normal holding zone
  • MVRV = 2-3: Stay cautious, consider reducing some positions
  • MVRV > 3: High-risk zone, consider significantly reducing exposure or hedging

Stablecoin Premium

What Is Stablecoin Premium

USDT and USDC should theoretically always equal $1. But in OTC trading, prices fluctuate slightly.

When USDT trades above $1 (say $1.002), there's a premium. This means traders are willing to pay extra to obtain stablecoins.

Why? Because they want to buy stablecoins with fiat, then buy cryptocurrency with stablecoins. The premium reflects strong demand for fiat entry.

Conversely, when stablecoins trade below $1 (discount), people are exchanging stablecoins back to fiat—capital is flowing out of crypto markets.

Stablecoin Premium as Market Signal

Premium > 0.2% = Strong Bull Signal

When stablecoin premium consistently exceeds 0.2%, there's significant capital waiting to enter from outside. This is a very strong bullish signal.

Example: January 2021, USDT premium reached 0.5%. Bitcoin subsequently rose from $30,000 to $58,000, almost doubling.

Premium = 0.05%-0.2% = Normal Bull

This is healthy bull market state, capital flowing in consistently but not excessively.

Premium ≈ 0 = Neutral

Capital inflows and outflows are balanced, market is in wait-and-see mode.

Discount < 0 = Bear Signal

When stablecoins consistently trade at a discount, capital is net flowing out. This is a bearish signal.

Example: May 2022 after Terra's collapse, USDC traded at 0.1% discount. Bitcoin subsequently fell from $30,000 to $20,000.

How to Use This Indicator

  • Check major stablecoins' (USDT, USDC) premium daily
  • Watch trend changes: premium shifting from rising to falling might signal a top
  • Combine with exchange flows: high premium + low outflows = bullish
  • Note extreme situations: premium above 1% is extreme FOMO, might signal short-term top

Practical Example: Analyzing the Market with CryptoQuant

Let me walk through a concrete example of how to combine these indicators.

Market Scenario: January 2026

Let's say it's January 2026 and Bitcoin is trading around $95,000. You want to know whether to buy, hold, or sell. You open CryptoQuant and begin systematic analysis.

Step 1: Check Exchange Inflows/Outflows

Past 7 days data:

  • Net flow: -15,000 BTC (negative means net outflow)
  • Exchange holdings: fell from 2.3 million to 2.285 million

Initial judgment: Bullish. Supply is decreasing.

Anomaly check:

  • Yesterday's single-day inflow: 8,000 BTC
  • 30-day average inflow: 3,200 BTC
  • Yesterday's inflow was 2.5x the average

Warning signal: Yesterday's abnormal large inflow needs monitoring. If large inflows continue today, it could be short-term selling pressure.

Step 2: Check Long-Term Holder Behavior

Past 30 days data:

  • Long-term holder supply: increased from 13.5 million to 13.55 million
  • Monthly increase: 50,000 BTC

Initial judgment: Bullish. Determined holders are accumulating even as price consolidates.

Historical comparison:

  • This accumulation rate approximates October 2023 levels
  • After that accumulation, Bitcoin rose 30% in 3 months

Step 3: Check MVRV Ratio

Current data:

  • MVRV: 2.1
  • 30-day average: 1.9

Position judgment:

  • Not in overbought zone (3-4)
  • Not in oversold zone (<1)
  • In neutral-to-slightly-elevated position

Implication: Market has some speculation but hasn't reached extreme levels. Most holders are profitable (about 110% gains), but not in mania stage.

Step 4: Check Miner Behavior

Past 7 days data:

  • Miner-to-exchange transfers: average 350 BTC daily
  • 30-day average: 380 BTC
  • Miner reserves: essentially stable at 1.9 million

Initial judgment: Neutral-to-bullish. Miners have no selling pressure, selling below average, indicating miners aren't rushing to exit.

Step 5: Check Active Addresses

Past 7 days data:

  • Daily active addresses: 950,000
  • 30-day average: 920,000
  • Price 7-day change: +$500 (+0.5%)

Judgment:

  • Active addresses up 5%
  • Price essentially flat
  • This is healthy divergence: participation increasing but price isn't overreacting

Step 6: Check Stablecoin Premium

Current data:

  • USDT premium: 0.05%
  • USDC premium: 0.03%

Judgment:

  • In normal range
  • No strong signal of large capital entering from outside
  • But also no capital outflow

Synthesis

Combining all indicators:

Medium-to-long-term bullish signals:

  • Exchange net outflow of 15,000 BTC (supply decreasing)
  • Long-term holders added 50,000 BTC (determined holders accumulating)
  • Miner selling pressure low (no forced selling)
  • Active addresses increasing (higher engagement)

Short-term risk signals:

  • Yesterday's abnormal large inflow of 8,000 BTC (needs monitoring for continuation)

Neutral signals:

  • MVRV=2.1 not in extreme zone
  • Stablecoin premium normal
  • Active addresses increasing but price not overreacting

Decision Framework

Based on this analysis, different trader types' decisions:

Long-term investors (6+ month holding period):

  • Decision: Hold or add small positions
  • Reasoning: Medium-to-long-term indicators bullish, no extreme signals
  • Add strategy: If price pulls back to $92,000-$93,000, can add 5-10%

Swing traders (days to weeks holding period):

  • Decision: Wait for confirmation of yesterday's large inflow signal
  • Reasoning: Short-term has abnormal inflow risk
  • Strategy:
    • If today's inflows continue above 5,000 BTC and price breaks below $94,000 → short-term hedge or short
    • If today's inflows normal (<3,000 BTC) and price stable → consider buying on dips

Day traders:

  • Decision: Watch $94,000-$96,000 range breakout
  • Support: $94,000 (yesterday's low)
  • Resistance: $96,500 (this week's high)
  • Strategy: Chase long on breakout above $96,500, stand aside on break below $94,000

Ongoing Monitoring

After entering/closing positions, set monitoring indicators:

Every 4 hours check:

  • Any new anomalies in exchange flows
  • Whether price breaks key levels

Daily check:

  • Whether long-term holder supply continues increasing
  • Whether MVRV approaches extreme zones (>3 or <1)

Weekly check:

  • All indicators' 7-day trend changes
  • Update medium-to-long-term judgment

Advanced CryptoQuant Features

Once you've mastered basic indicators, explore more advanced features.

Prophet Indicator

CryptoQuant's "Prophet" indicator uses machine learning algorithms to predict price trends for the next 7 days based on historical on-chain data patterns.

Important note: This isn't magic or a 100% accurate prediction tool. It's a statistical model telling you "given similar historical on-chain data patterns, price subsequently typically behaved this way."

How to use:

  • Treat Prophet predictions as background information, not primary signals
  • When multiple indicators point in the same direction, Prophet's prediction increases your confidence
  • If Prophet prediction conflicts with other indicators, prioritize other indicators

Limitations:

  • Black swan events can't be predicted
  • Historical patterns may fail after market structure changes
  • Should not be relied upon alone for trading decisions

Whale Alerts

Setting alerts for large whale transfers is an effective way to monitor actively.

Alert setting recommendations:

  • Bitcoin: Single transfer above 500 BTC
  • Ethereum: Single transfer above 2,000 ETH
  • Adjust based on your focus

After receiving alert, run through this checklist:

  1. Is this an exchange internal transfer? (usually doesn't matter)
  2. Is this from cold wallet to exchange? (possible sell preparation)
  3. Is this from exchange to cold wallet? (possible long-term holding)
  4. How is price reacting to this news?

Real example: February 2024, an address withdrew 10,000 BTC from Binance to an unknown cold wallet. Whale alert triggered. Investigation revealed this wasn't an exchange internal transfer, but a genuine external withdrawal.

Subsequent tracking showed this address had repeatedly bought at the bottom in 2020-2022. This was a bullish signal. A month later, Bitcoin rose from $48,000 to $64,000.

Compare Across Exchanges

CryptoQuant supports viewing inflow/outflow data by exchange. You can check Binance, Coinbase, Kraken, and other major exchanges separately.

Why this matters: Different exchanges have different user bases, so inflows/outflows mean different things:

Binance:

  • High retail ratio
  • Global user distribution
  • Large inflows might be retail FOMO
  • Outflows might be retail withdrawing to cold wallets

Coinbase:

  • High institutional client ratio
  • US market-focused
  • Large inflows might be institutional accumulation or distribution
  • Outflows might be institutions moving to cold custody

Kraken/Bitstamp:

  • Europe-focused
  • Mixed retail and institutional
  • Inflows/outflows reflect European market sentiment

Practical application: When inflows spike at one exchange but others don't show similar trends, check for specific events:

  • That exchange announced a listing/delisting
  • Regulatory news about that exchange
  • Promotional activity at that exchange

If these events don't exist, it might be large transfers from specific user groups, requiring further analysis.

Risks and Limitations

On-chain analysis is powerful but not omnipotent. You need to understand its limitations to use it correctly.

Indicators Can Be Manipulated

Large market makers and whales have ways to create false impressions:

Splitting transactions: Split 10,000 BTC into 100 transactions of 100 BTC each, transferred to exchanges separately. On-chain, it looks like 100 different addresses making small transfers, but it's actually one whale selling.

Exchange internal transfers: Exchange hot wallet to cold wallet transfers appear on-chain, but these aren't real buys or sells. If you don't identify exchange addresses, you might mistake them for real inflows/outflows.

Mixing services: Some mixing services can break address associations, making true fund flows difficult to trace.

Mitigation methods:

  • Use CryptoQuant's exchange address labeling features
  • Focus on trends, not single anomalies
  • Combine multiple indicators, don't rely on single signals

Overfitting Historical Data

History doesn't simply repeat. Signals that worked in 2021 might completely fail in 2026.

Market structure changes:

  • ETF launches changed capital inflow patterns
  • Increased institutional participation makes market behavior more mature
  • Regulatory changes affect trading patterns

Strategy diffusion: When an on-chain signal becomes widely used, it stops working. This is the market's self-regulating mechanism.

Mitigation methods:

  • Don't mechanically apply historical patterns
  • Understand the economic logic behind indicators
  • Re-validate indicator effectiveness when market structure changes

Lag

Many on-chain indicators are confirmation indicators, not predictive indicators. They tell you what happened, not what will happen.

MVRV's lag: When MVRV reaches 4, price might have already peaked and started declining. You won't sell before the top, you'll sell after the top forms.

Long-term holders' lag: When long-term holders start selling, price might have already retreated from highs. You avoid further decline, not avoid the initial drop from the top.

Mitigation methods:

  • Treat on-chain indicators as confirmation tools, not primary signals
  • Combine with forward-looking technical analysis
  • Don't expect to trade at absolute tops and bottoms, accept reasonable lag

Data Interpretation Requires Experience

The same data can be interpreted completely differently by different people:

  • Increased inflows are bearish (selling pressure)

  • Or bearish-then-bullish (panic selling over, might rebound)

  • MVRV=3 is overvalued (should sell)

  • Or strong bull market normal level (should hold)

These judgments require experience, perception of market sentiment, and combining price action, volume, news, and other information.

Mitigation methods:

  • Don't rush to conclusions
  • Record your interpretations and results, learn continuously
  • When uncertain, choose to observe or test with small positions

Integrating CryptoQuant Into Your Trading

Understanding indicators is one thing; systematically integrating them into trading decisions is another. Here's a specific framework.

Daily Routine Check

Spend 5-10 minutes daily following this checklist:

Core indicators (must check):

  1. 24-hour exchange inflows/outflows

    • Any abnormal spikes (>2x average)
    • Net inflow or net outflow
  2. 7-day trend in exchange holdings

    • Increasing or decreasing
    • Is the rate of change accelerating
  3. 7-day change in long-term holder supply

    • How much increasing (bullish) or decreasing (bearish)
  4. Current MVRV position

    • Approaching extreme zones (>3 or <1)

Secondary indicators (check when time allows): 5. Active address trend 6. Miner-to-exchange transfer volume 7. Stablecoin premium

Recording: Keep a simple spreadsheet or notes, recording daily:

  • Key data
  • Your judgment (bullish/bearish/neutral)
  • Next day, review whether your judgment was correct

Weekly Deep Analysis

Spend 30 minutes weekly for more comprehensive analysis:

Step 1: Review on-chain data changes for the week

  • Which indicators showed significant changes
  • Whether these changes are persistent or temporary
  • How price reacted to these changes

Step 2: Compare on-chain signals with price action

  • On-chain data bullish but price declining → might be opportunity
  • On-chain data bearish but price rising → might be trap
  • Both aligned → trend likely to continue

Step 3: Update your medium-to-long-term judgment

  • Current in bull market, bear market, or ranging
  • Where main risks and opportunities are
  • Which indicators to focus on next week

Step 4: Adjust trading plan

  • Adjust position sizing based on on-chain data changes
  • Update stop-loss and take-profit levels
  • Plan entry and exit strategies for next week

Verify Before Major Decisions

When you're about to open or close large positions, verify your judgment with on-chain data:

If you think price will rise: Check whether on-chain data supports:

  • ✓ Exchange net outflow or outflow trend
  • ✓ Long-term holders accumulating
  • ✓ MVRV not in extreme overvalued zone
  • ✓ Miners have no selling pressure

If most support, your judgment has on-chain data backing. If most contradict, reconsider your view.

If you think price will fall: Check whether on-chain data aligns:

  • ✓ Exchange net inflow or inflow trend
  • ✓ Long-term holders exiting
  • ✓ MVRV in overvalued zone
  • ✓ Miners actively selling

Similarly, if most support, your judgment has on-chain data backing. If most contradict, you might be trading against the trend.

Build Your Own Indicator Weights

Not all indicators are equally important to you. Build a weighting system based on your trading style:

Short-term traders (days holding period):

  • Exchange inflows/outflows: 40% weight
  • Stablecoin premium: 25% weight
  • Active addresses: 15% weight
  • MVRV: 10% weight
  • Others: 10% weight

Swing traders (weeks to months holding period):

  • Long-term holder behavior: 35% weight
  • Exchange holdings trend: 30% weight
  • MVRV: 20% weight
  • Miner behavior: 10% weight
  • Others: 5% weight

Long-term investors (6+ months holding period):

  • Long-term holder behavior: 50% weight
  • MVRV: 25% weight
  • Exchange holdings long-term trend: 15% weight
  • Others: 10% weight

After building your weighting system, create a scorecard:

  • Score each indicator -1 (bearish) to +1 (bullish)
  • Calculate weighted average for composite score
  • Determine position size based on score

Pricing and Usage

CryptoQuant offers different versions for different needs:

Free tier:

  • Access to basic indicators
  • 24-hour delayed data
  • Limited chart exports
  • Best for: Learning phase, individual investors

Paid tier (Individual):

  • Real-time data
  • All indicators access
  • Custom dashboards
  • API access (limited)
  • Price: ~$100-300/month
  • Best for: Active traders

Professional tier:

  • All individual tier features
  • Unlimited API calls
  • Advanced data exports
  • Dedicated support
  • Price: ~$1,000+/month
  • Best for: Institutions, quant teams

My recommendation: Start with the free tier, learn the basic indicators. When you find yourself needing real-time data daily, upgrade to the paid individual tier. You don't need all 100+ indicators—mastering 10-15 core indicators is more important.

Conclusion

CryptoQuant isn't a crystal ball that guarantees profits. But it provides a window into the genuine underlying activity in crypto markets.

When price charts are consolidating, technical indicators contradict, and social media is full of noise, on-chain data might tell you: supply is consistently decreasing, long-term holders are accumulating, MVRV is still in reasonable range—this isn't a bubble top.

Successful crypto traders aren't those who guess prices right. They're those who understand market structure. On-chain analysis is one of the key tools for understanding market structure.

When you combine on-chain data, technical analysis, and market sentiment, you have a more complete market perspective. You're no longer a blind follower chasing highs and selling lows—you're a systematic, methodical trader with an information edge.

CryptoQuant makes professional-grade on-chain data accessible. Spend time learning these indicators, understand the logic behind them, then systematically integrate them into your trading decisions. This is the path to building long-term trading edge.

Remember: trading is an information war. On-chain data is your weapon. Learn to use it.


ChartMini monitors mainstream cryptocurrencies' on-chain data indicators in real-time, automatically analyzing exchange inflows/outflows, long-term holder behavior, MVRV, and other key metrics, alerting you when significant on-chain signals emerge so you never miss important market structure changes.

Related Posts