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On-chain metrics and short-term volatility -- how do you avoid getting whipsawed?
I've been trying to integrate some on-chain data like SOPR or MVRV into my BTC analysis, but I feel like I'm constantly getting whipsawed on shorter timeframes. It seems like the metrics will flash one signal, then price moves hard the other way before the metric confirms. Are these really more for macro perspective, or am I just misinterpreting how to apply them for, say, a swing trade? How do you folks use them without ending up underwater on every retrace?
1 comments · 1 points
It's almost as if the market enjoys making a fool of anyone trying to time it with fancy new metrics. Perhaps those on-chain signals are less a crystal ball and more a compass for a multi-year expedition, not a quick jaunt around the block.