Learn to interpret key metrics that reveal market sentiment and potential price movements
Market indicators are statistical metrics that provide insights into market conditions, investor sentiment, and potential price movements. Unlike technical indicators that focus solely on price and volume, market indicators incorporate broader data points including on-chain metrics, social sentiment, and macroeconomic factors.
By learning to read and interpret these indicators, you can make more informed trading decisions, identify market trends early, and avoid common pitfalls. No single indicator is perfect, but combining multiple indicators provides a more complete picture of market conditions.
The number of unique addresses participating in transactions. Increasing active addresses typically indicates growing network adoption and can be bullish for price.
Bullish: Sustained increase in active addresses
Bearish: Declining active addresses over time
Tracks the movement of crypto to and from exchanges. Large inflows often precede selling pressure, while outflows suggest accumulation and holding.
Bullish: Large exchange outflows (accumulation)
Bearish: Large exchange inflows (potential selling)
Monitors large transactions by major holders ("whales"). Whale accumulation can signal confidence, while distribution may indicate upcoming price weakness.
Bullish: Whales accumulating and holding
Bearish: Whales distributing to smaller holders
Measures the computational power securing the network (for Proof of Work chains). Rising hash rate indicates miner confidence and network security.
Bullish: Increasing hash rate (miner confidence)
Bearish: Declining hash rate (miner capitulation)
Bitcoin's market cap as a percentage of total crypto market cap. Rising dominance suggests capital flowing to safety, falling dominance indicates "alt season."
Rising: Risk-off, capital to BTC
Falling: Risk-on, altcoin season
Total value of assets traded. Volume confirms price movements—rising prices with high volume are more sustainable than those with low volume.
High volume + price rise: Strong trend
Low volume + price rise: Weak trend
Total value of all circulating coins. Tracks overall market size and can indicate bull/bear market phases when compared to historical levels.
All-time highs: Strong bull market
Near lows: Bear market or accumulation