Investments in cryptocurrency are becoming more and more popular today, in particular with the recent high level of Bitcoin and the pro-Crypto position of the United States government. If you plan to diversify your portfolio, invest in cryptocurrencies may be worth it. However, like any asset class, investment decisions in crypto are better informed when reinforced by relevant data and an understanding of the current market feeling, especially since the crypto can be more volatile than many asset classes.
Two key indicators that can help you make more enlightened cryptography investment decisions are chain metrics and native blockchain data. These indicators provide you with real -time market information, which is not available for retail investors who negotiate more traditional assets, such as actions and ETFs. This data is based on Blockchain technology, a new technology where each transaction carried out on a large decentralized distributed book is available for everyone.
Main to remember
- Channel metrics provide you with key data points that are not available for retail investors in traditional markets.
- Look for an increase in new and active addresses and carefully monitor the activity of minors.
- Huge exchanges and output entries, as well as whale wallet movements and dormant wallets are active, can point out the start of a market trend.
- These measures should not be used alone, but considered together for better image on the market.
Unique indicators to analyze the markets of cryptocurrencies
Blockchain public transactions are visible for everyone, making chain indicators a gold mine of knowledge of trends such as the increase or decline in activity. They can offer investors a view of the pulse on the market. These data are generally free and do not require a complex analysis, because several cryptographic analysis platforms like dune, Nansen and Glassnode put these measures in a format that you can easily understand. However, it is not advisable to examine each native indicator of the blockchain; Get those that mean the most for you. It can be indicators that have a significant impact on the market. In this article, you can learn more about the measures that matter the most and how to interpret them for trading and investment in cryptography.
New creation of active address and portfolios
The cryptocurrency is stored in wallets, which have addresses. Whenever a new user is in a chain, he creates a wallet to manage his crypto. The new addresses generated tend to be correlated positively with an increase in the price of the part as indicated in the graph below, which shows a general correlation between the price of bitcoin and the number of new cryptographic wallet addresses between the approximately 10 years finished in late May 2025:
These new addresses show an increased activity and adoption of a blockchain network, which could indicate an increasing bullish dynamic.
Likewise, an increasing number of active addresses on any delay shows a potential demand for this cryptocurrency.
Advice
Be careful to count only on this metric, as it can be easily manipulated. Airlines farmers can create thousands of spam portfolios, which may seem authentic on metric platforms on the channel.
Whale wallet movements
A cryptocurrency is an entity that holds a large part of a particular cryptocurrency and is capable of influencing the price of a room by moving it among the portfolios, which gives it to an authentic and robust volume of negotiation generated by many unrelated investors. The whales are not determined by a particular quantity, but by what percentage of the power supply of a room they hold. For example, only four addresses hold 100,000 BTC or more, worth $ 66 billion on June 17, 2025, according to Bitinfocharts. The sudden movements of wallets with huge assets can quickly cause a peak or dive the price, disturb and even modify the current market trend.
Whale portfolios moving their assets to centralized exchanges are probably a sales signal while they start a distribution phase. You can configure alerts on these portfolios once you have identified them and get instant notifications of any important activity they take that could have an impact on the market.
Exchange of entries and outputs
An cryptocurrency exchange is an online platform where you can sell or buy crypto. If the data show that cryptocurrency takes place in exchanges (which are called exchange entries), it could be a strong distribution panel, showing that investors sell their assets.
Conversely, the exchange exits suggest that investors move from assets to cold storage (which is potentially a bullish signal). You must monitor exchange inputs or higher exchange outlets such as Kraken and Coinbase, because the volume on smaller exchanges has a minimum impact on the general market.
Minor activity
Minors, who come in a blockchain network, can directly have an impact on the price of a cryptocurrency, especially in shorter times. Minors generally sell part of their crypto rewards to cover their operating costs. But if they sell more than usual, it is probably a lowering signal.
The important data points to search are minors, outputs and reserves. Since 2024, BTC minors have sold more of their assets as the price has increased. This profit taking showed a negative correlation between reserves and the price, minors, the minors liquidated their awards in the middle of the rally.
Events in half are another variable on which you should keep an eye on. Miners generally sell their BTC assets after a half event (which occurs every four years) as their awards become smaller with each reduction of successful.
Sleeping wallet activity
Dormant portfolios are cryptocurrency portfolios which show no activity recorded for an extended period (think of five and over). Whenever these portfolios suddenly become active, they arouse curiosity among the traders, especially if the wallets have huge cryptographic operations or were used for the last time at the start of extraction days.
When these portfolios liquidate their assets, this could be a lower signal and indicate a change of feeling in the cryptocurrency in question. But if they transfer their assets to a new address without selling, it could be a strong bullish signal. (The identity of a portfolio address owner is not easily shown, but a platform can confirm a transfer.) In 2023, three dormant portfolios suddenly transferred $ 230 million Bitcoin, after its price was optimistic two weeks earlier. According to TradingView Data, BTC jumped after the portfolio event, ending the year with nearly $ 9,000 per piece of winnings.
The bottom line
Channel indicators provide unique information on the cryptocurrency market, which you can use to make informed decisions without having to count only on traditional technical analysis tools. Although chain indicators provide a means of seeing market movements in real time, they should not act as the only basis of your investment decisions. Fundamentals and high -impact news events can also cause large movements on the market, beyond the expected impact of these indicators. Stay in indicators that have a significant impact on the market and do not forget to keep an eye on fundamental and news events.
