Part 5/8:
The analysis of short-term versus long-term holders provides insight into market sentiment. Significant shifts in these ratios can signal upcoming price movements. For example, when short-term holders realize profits, an influx of coins into circulation can drive prices down, suggesting it's an optimal time to sell.
3. On-Chain Metrics and Value Scores
Metrics such as the NRBZ score (Market Value to Realized Value) and the HODL Ratio can gauge market tops. When these measures indicate overheating (for example, surpassing a score of six), it's a strong signal to evaluate current positions.