Top 5 Important On-chain Indicators Of BTC On CryptoQuant

As introduced by CoinCu in the previous article, on-chain data is one of the useful tools that allow us to compare past results and on-chain data. So today let’s find out with CoinCu the top 5 important on-chain indicators of BTC on the CryptoQuant platform.

BTC All Exchange Netflow

BTC all Exchange Netflow – an on-chain indicator that calculates the total amount of BTC deposited on the exchange minus the amount of BTC withdrawn to show that during that day or week BTC was net withdrawn or net deposited.

If it is net loaded, it shows that selling pressure will increase, threatening the price. If the net is withdrawn, it shows that the demand of investors increases and also reduces the selling pressure.

BTC All Exchange Reserve

BTC All Exchange Reserve: the supply of BTC reserves on all exchanges.

• If BTC is continuously net withdrawn, the supply will decrease on exchanges => showing that BTC is scarce and that is a potentially bullish sign.
• If BTC is continuously net-loaded, the supply will increase on exchanges => showing excess BTC and that is a bearish sign.

Stablecoin Ratio

The Stablecoin Ratio is an index calculated by dividing the market capitalization of BTC by the market capitalization of all Stablecoins.

• When this indicator is high, it means that the supply of stablecoins is low compared to the capitalization of BTC, indicating low buying pressure and the potential downside of BTC.
• On the contrary, when this index is low, it means that the source of stablecoins is high compared to the BTC capitalization and there will be potential buying pressure from this amount of stablecoins, from which the potential for the price increase is high.

Whale Ratio

Whale Ratio is an indicator related to selling pressure from whale wallet addresses. This is an index calculated by the total of 10 Bitcoin deposit transactions on the exchange and divided by the total amount of Bitcoin deposited on the exchange.

If this indicator increases sharply, it can be seen that the amount of BTC loaded onto the exchange is high and is showing that whales are loading BTC onto the exchange, which is likely to put downward selling pressure.

Miner Outflow

Miner Outflow is an on-chain indicator related to BTC miners because the total amount of BTC held by miners is also a relatively large amount.

Miner Outflow is the amount of BTC transferred by the miner’s wallets. Possible possibilities are that they move to the exchange to sell or sell OTC or internally transfer between wallets. So we should only observe if there is a large amount of BTC being transferred in a row, it is likely that it is a gradual sell-off of miners.

In addition, you can consult experts on Cryptoquant by accessing Quicktake and Glassnode’s weekly on-chain report to see the comments.

However, these statements are for reference only, you need to have an objective view to evaluate the market and make the best decision.

Large funds like Grayscale we should also pay attention and check regularly at the Coinglass website to know which altcoins they are holding and selling or buying. Hope this article has helped you to understand more about the important on-chain indicators of Bitcoin.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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