Network Value to Transactions ratio measures the dollar value of crypto asset transaction activity relative to network value. This is a simple way to compare how the market prices one unit of on-chain transactions across different networks, together with Ichimoku are the only indicators that anticipate what´s next. A professional/institutional trader in Bitcoin can´t just use this indicator to get a decision wether he is going long or short, as well as you can´t rely your trading is just one indicator, however it gives you a clear vision of how overvalued or undervalued Bitcoin is.
So in day trading/scalping terms it doesn´t really matters as a scalper will be always looking for quick profit regardless if the overall trend is bearish or bullish, but as trend trader knowing how Bitcoin is valued per unit of on-chain transaction volume is a great tool to see where you are. Network value consists of the total market value of all tokens in circulation. The transaction element is an estimate of the value of on-chain transaction activity drawn from block explorers and blockchains, so no doubt is a great tool.
If you look at my chart, the indicator has been calling the major drops before it finally happened. The use of this tool doesn´t mean that you already are the master trader and you can beat the market whenever you want, no at all, the use of this indicator is something that you have to combine together with your TA, if you want to be a profitable trader. By the way I´m not placing any EMA or any indicator on the chart since I want you all to see the overall vision without any other noise.
If you didn´t notice, Alts are not following Bitcoin which normally is a bearish sign, like the canary that dies first. I´m still expecting at least a retrace to 4700 levels to get another wave up. I´m sending daily signals and updates to my Telegram channel with specific set ups for each trade, feel free to join us. As always thanks for watching, don´t forget to like and follow if you consider this information useful!
So in day trading/scalping terms it doesn´t really matters as a scalper will be always looking for quick profit regardless if the overall trend is bearish or bullish, but as trend trader knowing how Bitcoin is valued per unit of on-chain transaction volume is a great tool to see where you are. Network value consists of the total market value of all tokens in circulation. The transaction element is an estimate of the value of on-chain transaction activity drawn from block explorers and blockchains, so no doubt is a great tool.
If you look at my chart, the indicator has been calling the major drops before it finally happened. The use of this tool doesn´t mean that you already are the master trader and you can beat the market whenever you want, no at all, the use of this indicator is something that you have to combine together with your TA, if you want to be a profitable trader. By the way I´m not placing any EMA or any indicator on the chart since I want you all to see the overall vision without any other noise.
If you didn´t notice, Alts are not following Bitcoin which normally is a bearish sign, like the canary that dies first. I´m still expecting at least a retrace to 4700 levels to get another wave up. I´m sending daily signals and updates to my Telegram channel with specific set ups for each trade, feel free to join us. As always thanks for watching, don´t forget to like and follow if you consider this information useful!
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New Bitcoin analysis
