But the reality is theres. An immeasurable amount of valuable information captured on chain, especially for bitcoin, and all this information, if analyzed correctly, can give a clearer picture about where bitcoin is heading next and then, by extension, the rest of the cryptocurrency market, and so in. This video were discussing two very important, crucial in fact on chain indicators that have recently come into play and which seem to be driving the state of the market right now. What do these indicators mean? What are they indicating is the bottom in or are we gon na see more blood in the streets? Stay tuned in this video were doing a deep on chain analysis of bitcoin Music. Welcome to the channel. My name is matty, and this is altcoin buzz. We are a crypto investment research company. We have documented many 100x returns on coins and tokens that are top projects today, really before anyone else was even talking about them, and if you want to see our detailed process for researching such projects, then our new and improved altcoin buzz access group is for you, Our plans start at 99 monthly, be sure to click the link below for more information. If you havent already done so, you have one more day to check out an amazing promotion going on right now with our friends over at mexc. You can sign up for an account there and fund it. You can buy bitcoin or any of the thousands of altcoins that are available.

Youre gon na be able to do so with discounted trading fees as well. Plus you can win up to six thousand six hundred. Ninety nine dollars in extra cash, in your account, give it a try, use either the link that is popping up right now on screen or the one that can be found in the description of this video gentle reminder guys, even when deep diving into on chain analysis. Nothing is 100 in this market, any kind of investment has corresponding risk, and so do not consider this video to be official financial or investment advice. Welcome to our new segment youre going to be seeing more of these in the future and, as we said in the opening, bitcoin leads the market, its always setting the pace for the rest of crypto, the rest of all the altcoins out there and the market. Of course is uncertain right now, so to help you guys figure out how to manage these conditions were starting. This new weekly segment were going to be looking at bitcoins on chain analysis indicators in order to give us more information for bitcoins short term outlook. Now look to be fair on chain indicators are not always 100 correct. You cant just observe them and have some kind of a crystal ball in which you see the future with perfect accuracy. That is not the case were not purporting that to be the case, but they do help us to see some of the patterns that are emerging, analytically, statistically, and that is valuable and when it comes to these kinds of analyses, its not just about the price of Bitcoin much more important in some cases are the metrics that are occurring just below the surface that we dont necessarily talk about on a day to day basis.

With that in mind, lets take a look at this weeks indicators and how the numbers look and from there well extrapolate a little bit and take a look at the outlook when it comes to bitcoins price. This week were looking at two main indicators. They are number one net, unrealized profit or nup and number two. The exchange whale ratio so first were gon na see what they are were gon na, define them and then show you what the indicators are telling us all right. So, to begin with, what are they exactly well net unrealized profit is probably exactly what you think it is if we were to ask you to guess its, how much of the bitcoin supply is in profit and its an important on chain indicator because strong hands i.e. The hodlers are going to keep hodling, but often it does take a while to get to that stage. The softer so called paper hands often sell when their first purchase becomes unprofitable, thats natural for new investors, and we can see how strong hodlers positions are by using this indicator. Everybody watching this video is intelligent, so you do not need us to tell you that. Yes, most 2021 purchases of bitcoin are unfortunately not profitable, but there are positive signs on chain like growing net outflows from exchanges. So this means that bitcoin is going into private, wallets and cold storage, and this number is growing its growing very quickly. In fact, when it comes to this number net outflow, we just reached a new all time, high, so thats, very positive, but back to nup net unrealized profit, so its expressed as a ratio between zero and one at zero.

No bitcoin is at a profit, thats, basically impossible at this stage, as long as old bitcoiners still have access to their wallets and at one on the opposite side of the spectrum, which you can only get at all time highs. All 100 of bitcoin held is profitable. So, where is nup today, nup 0.38 Music, which translates into 38 of all bitcoin being currently profitable. So yes, its possible that your first btc buy may be in the money. But if you bought almost any time in these last six months, like through a dca strategy that we do recommend still, unfortunately, those purchases are not profitable, but look at it. This way, theyre not profitable yet, but what does that metric? The nup tell us is 0.38 good. Is it bad? Is it neutral? Well, our terrific research team got some info for us and any value above 0.70. Those values are usually indicative of a bull market top, while values below 0.10 and approaching zero are normally signs of bear market bottoms. But look these rules dont always apply for a few different reasons. First of all, bitcoin as an asset does not have a long history. Whales can always manipulate bitcoins price anytime really and thirdly, the presence of institutional interest is a new phenomenon, and trends are important. If nup is declining, then the number of investors holding btc at a profit is shrinking. Its likely the weakest hands have sold already, because many of these 62 percent not in profit, will hold on and wait for the market to recover.

So psychologically speaking, investors dont like to sell at a loss if they dont have to and the current 0.38 and up is the same as it was in december 2018 and november 2019. Prices then, for reference were 3 500 that was december 2018 and 8 500 in november 2019.. So in those instances it was actually a pretty good time to buy. Even when considering todays relative lows, you still multiplied your investment by two or three or four times, but that begs the question: is it a good time to buy now? Look. The short answer is probably yes, everything that we talk about here is probabilistic. After all, there are no absolutes, but while nup is declining, bitcoin itself is trading sideways, so this means the worst may very well be in already for bitcoin as a good part of these, 62 percent are holding, as we said, and the weakest hands are already out Of the game and the last two times that we were in this nup range, a big bull market, followed now. Does that guarantee that its gon na happen again? No again, we do not have a perfectly accurate crystal ball, but we see things lining up in a similar fashion to these two last instances. These two last similar patterns in history, and while there are small, long term holders most of that 38 in the money right now are either whales or miners and with all weve seen from miners selling their coins recently to maintain their networks.

We believe most of that 38 can be represented by whales and in our opinion, theyre not going anywhere and well explain. Why thats our opinion in just a moment, but first quick reminder: you have just over 24 hours left to take part in this awesome. Giveaway thats happening jointly between altcoinbuzz and mexc. Again, when you sign up for a new account and funded for a trade, you can earn up to six thousand six hundred ninety nine dollars in bonuses which are added by the way right to your account. And, of course, yes, you can buy bitcoin, along with thousands of altcoins on mexc global, okay, now moving right along to explain why we think the whales are going to be holding on fiercely to their btc lets, explain tool number two: the exchange whale ratio. So when markets are not liquid and weve, seen from celsius and three arrows capital, that markets are not liquid, so when this happens, whales can have a huge influence on price and one of their orders can move the market entirely. Even in a huge market such as bitcoin, now the whale ratio fluctuates between zero and one whales are whales because they do big transactions. So this ratio measures the value of the top 10 transactions as a percentage of total incoming transactions to the exchange in question whales. Only send coins to exchange when they want to sell and thats what makes this a good indicator to watch.

They dont hold coins on exchanges. They do cold storage and multi sig wallets now in bull markets, the metric stays below 85 percent or 0.85, because lots of people are buying in bear markets, however, or an attempted fake out to make it look like a bull market for whales to sell into this Number goes above 85 percent, and today the total is at 0.7 70. This is the highest. This ratio has been since 2020 or the most whale bearish. This ratio has ever been. In other words, throughout this bear market whales should be doing tons of selling. They should be dominating transaction sizes with 85 or more of the total inflows to exchanges, but they arent its clear that they are not theyre. Holding and theyre buying whales are not selling; they are not capitulating, however, you want to frame it whatever words, whatever verbiage, you want to use its just, not happening. The whales are not parting with their bitcoin. So what do we make of all this well taken together when we combine nup and the exchange whale ratio? We see a few things. First of all, 38 of hodlers are in profit and most of the weekends have sold already, which is a good thing. Then you have the fact that most of the 38 holding are whales, based on the logic that weve outlined, the exchange. Will ratio of 0.7 or 70 percent means whales are not selling they are holding or buying? But importantly, they are not selling and the last two times that nup was at this same place.

In this same vicinity, bull markets came soon after for either two or three or even 4x returns and again bitcoin itself is trading sideways. In the context of all these observations, so we think these on chain tools can help us confirm that the bottom may be in for bitcoin, not with 100 certainty but thats, probably where things stand right now the weekends have sold to the strong hands and things can Stay down or choppy for a while that is true, especially with the global factors happening right now, such as the inflation, the imminent recession. That seems like its going to be shaking things up for nearly every region around the world, political and geopolitical instability. Yes, all these factors are going to contribute as well, but the fundamentals for bitcoin here look good and should continue to improve, so were looking for good buying opportunities here, despite the market conditions and, of course, when you are ready to buy, we recommend one. Last time you try our friends over at mexc global when you sign up for a new account with mexi, you can earn up to 6 699 as part of our joint giveaway. All of this in bonuses, which are added directly to your account. So you have more to trade with for either bitcoin or any other project that you may like check out our video from yesterday. By the way we covered our top five altcoins that we have our eyes on at the moment, because fundamentally they are strong.

They are quality projects and, if youre interested in these, whether its those alt coins, whether its bitcoin, whether its any other alt coin or project mexi, has a great selection check out the link thats popping up now on screen or the one you can find in the Description of this video nup and whale exchange ratio, let us know what you guys think about these on chain: analysis, metrics. As always guys. We wish you genuinely all the very best of luck.