๐Glassnode has launched a suite of 28 new metrics, offering a more detailed view of the digital asset market. These metrics are a game-changer for traders, providing insights that can be translated into potential buy and sell signals. ๐ฏ
One powerful use case is identifying seller exhaustion among short-term holders. Traders can now pinpoint moments of severe unrealized loss and capitulation, which often signal local market bottoms and potential entry points during a bull market. ๐
Why focus on short-term holders? They are often newer entrants or speculative traders who are more sensitive to price changes. During bull markets, they are responsible for the majority of realized losses, making their analysis valuable for identifying local market bottoms. ๐ง
By breaking down the short-term holder cohort into granular age bands, traders can pinpoint periods of seller exhaustion more effectively. This inside-out progression provides a clearer signal of potential local bottoms and subsequent market reversals. ๐
To identify seller exhaustion, Glassnode uses a combination of key metrics that provide insights into both unrealized and realized losses within the short-term holder cohort. These include STH MVRV by Age, STH SOPR by Age, and STH Realized Loss by Age. ๐
Using Glassnode's new Breakdown metrics to identify points of seller exhaustion during a bull market can offer numerous advantages for traders. These include early detection of local bottoms, optimized dollar-cost averaging strategies, enhanced market timing, and strategic flexibility. ๐ช
These powerful breakdown metrics are exclusively available with the Glassnode Enterprise plan. If you're an institutional trader or investor looking to gain a deeper edge in trading the Bitcoin and Ethereum markets, it's time to check out these new metrics! ๐