Hi guys, welcome to Barmy s #HoldOnChain Series

As usual, every 2 Sunday, we will have a Bitcoin On-chain Data Analysis.

It’s the first days of the new year, most investors in Vietnam or around the world are looking to keep money, so let’s find out with Barmy what is the behavior of Bitcoin users through a short analysis. Briefly below!

GENERAL INFORMATION

At the beginning of the new year, BTC is still continuing to sideway. Currently BTC is being traded at 16k9. The early days of 2023 are predicted to continue to be a year where the bear market dominates.

There is no signal that the money flow will return on these days. But we still expect the next projects and trends to come, pull the cash flow back and have mini uptrends.

Meanwhile, the Fear & Greed index is at 25. (Extremely Fear)

MACRO-ECONOMY OVERVIEW

Last week, there was some good news related to the world economic and financial situation. Typically, Non-farm growth is 223,000, slightly higher than expected and unemployment rate is at 3.5%.

The key is the inflation data: the wage rate for December 2022 was 0.3% lower than expected, and the market’s first reaction was to buy gold.

Around the world, Japan called on the G7 to unite against China’s “economic coercion”. Meanwhile, the Covid epidemic broke out strongly in this country of billions of people.

In the US, Senators nominate Trump as Speaker of the House. This is an important news in the presidential campaign of Donald Trump. If Trump is president again, the Crypto market will have a strong uptrend.

ON-CHAIN ANALYSIS

BASIC INDEXES

NUMBER OF BTC WALLET HOLDING

Let’s review the basic numbers with Barmy.

First, we can see, the number of wallets the number of wallet addresses holding 0.1+ BTC has just reached ATH at 4,212,110. This is an impressive number that shows the possibility of mass adoption of BTC when family members may have started to know about BTC.

Similarly, the number of wallets the number of wallet addresses holding 0.01+ BTC has just reached ATH at 11,444,918.

BTC BALANCE ON EXCHANGES

There is one notable indicator when analyzing On-chain data, which is the balance of $BTC on exchanges.

As noted by MacroMicro, the total balance of $BTC on exchanges continues to be at a 4-year low, and is currently at 2,263,114 BTC.

The time of downtrend is the time to gather for investors in general and sharks in particular. It is understandable that $BTC is withdrawn from exchanges.

After the collapse of one of the world’s largest cryptocurrency exchanges FTX, there are increasing doubts about the transparency and safety of the centralized exchange.

The collection and withdrawal of cold wallets is also a form of long-term holding, as well as better protection of your assets.

ADVANCED INDEXES

Bitcoin: NVT Ratio

Network Value to Transaction Ratio (NVT Ratio) is defined as the ratio of the market capitalization divided by the trading volume in the specified window.

If the value is too high, it means that the network is overvalued relative to the possibility of low-volume cryptocurrency trading, implying the possibility of an upcoming price bubble elimination. This explanation is based on the mean reversal effect.

It is an indicator of whether the blockchain network is overvalued.

High: Network value is overvalued – Bearish
The market cap is overvalued compared to the ability to trade coins that are low in volume

Low : Undervalued network value – Bullish
Market capitalization is undervalued compared to the ability to trade high volume coins

Currently, the Bitcoin: NVT Ratio index has just reached 34.43, the highest level in 18 months recently. This means, the market is at the bottom.

BTC: Miners’s Balance

BTC Miners’ Balance just reached highest in 1 month here at 1,826,956,773.

This means that miners appear to be returning to the market.

CONCLUSION

On-chain data analysis has always been a fun activity. There are many good and useful indicators for traders and holders to follow.

But on-chain data analysis has always been an advanced way of analysis, not for the masses. The analysis needs to be based on knowledge, experience and experience, combining many indicators to make informed investment decisions.

Above are a few indicators you can refer to this week, there are many other useful indicators, you can follow Barmy in the following analysis.

The above is for information only, not investment advice. You should find out for yourself and give yourself the best investment decisions!

Thank you for reading, have a nice weekend!

Andrew – Barmy Team

Read more:

1/ #HoldOnChain: Nansen – Powerful Cash Flow Tracker

2/ ETH On-chain Analysis Dec 25: How is ‘Queen of Altcoins’ performing?