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If you're planning to buy more #crypto during the dip consider this:
DON'T buy the cheapest shitcoins.
Many of these projects are dead and won't EVER come back to their previous all time high!
Look out for value coins with good fundamentals / high quality.
1/4
5/ Mempool Number of Transactions by Cohort
From Wed 4th to Thu 5th we see a massive increase of transactions during the big spike in price from 39.5k down to 35k.
People were suddenly reacting to the big price drop.
Orange/red shows they paid high fees for fast transactions.
We are now even closer to the last previous bear market where the maximum pain level was reached at around 50% of addresses and entities being in profit.
That doesn't mean the bottom is an and that there couldn't be more downside. Historically speaking we are very close though!
Week 19 On-chain summary from @glassnode
"Rate Hikes Drive Markets Lower"
[A Thread 🧵]
Starting with:
1/ Accumulation Trend Score
This tool tracks when large entities/whales and/or large portions of the market (aka shrimps in large numbers) are adding to their coin holdings.
6/ Exchange Fee Dominance
The big drop from Wed 4th to Thu 5th can also be seen on the exchanges inflow of #Bitcoins
(🟣 Wave)
Traders were sending their coins to exchanges to cash them out which led to a further price decrease.
7/ Exchange Inflow/Outflow Volume
This metric shows the 🟢 inflowing and 🔴outflowing #BTC to exchanges.
The highlight here is the comparison of '17/'18 to every single day right now. The volume increased significantly and shows how much bigger the #crypto space got over time!
10/ Conclusion
The before shown metrics lead to the conclusion that weakness has appeared across numerous sectors on-chain & off-chain.
Capital outflows in stablecoin markets have occurred and weak prices are driven by poor sentiment.
Investors are derisking due uncertainty.
Thanks for reading and I hope you got some useful information out of this thread.
Follow me for weekly updates @_FreedomTrades
If you want to see all the details take a look at the
@glassnode video linked below:
https://t.co/wVnva8u6Cc
8/ Futures Open Interest Daily Change
Sometimes major drops in price are because of big liquidation cascades of leveraged trades.
The recent big drop in price was not a liquidation driven event this time.
It is the market reacting to macroeconomic forces.
9/ Aggregate Stablecoin Supply 30-day Change
These last metrics show that the aggregate stable coin supply is currently decreasing, people are redeeming their stable coins (especially $USDC).
There is an overall desire to risk off.
We see a slowdown in the #crypto industry.