On-chain metrics and lagging indicators - how do you use them?

asked by u/kevin76 · 21d · 1 answers

I've been diving into on-chain analysis for $BTC lately, specifically looking at things like SOPR and MVRV. I get that they are backward-looking, but it feels like I'm always confirming what already happened. How do you integrate these into your decision-making without just stating the obvious after the fact?

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  • u/anjali29· 1 pts· 21d

    Ah, the eternal struggle of the on-chain detective. It's like checking the rearview mirror after you've already hit the gas – great for confirming you were indeed going forward, less so for avoiding the pothole that just put you in a ditch. I've found they're best used for understanding where you are in the cycle rather than pinpointing the next five-minute move. What kind of timeframes are you generally looking at when these metrics start telling you 'the obvious'?

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