Philip Gradwell, the Chief Economist of Blockchain data firm Chainalysis, shared his views recently on which on-chain data indicators are helpful in trading. In a recent interview with Business Insider, Philip mentioned that exchange inflow and trade intensity are two on-chain data indicators that have the potential to change the way you trade Bitcoin.
Philip Gradwell shared his views on blockchain analytics and technical analysis and answered a question that technical analysis is widely used by the traders on the market and may not actually work in a comparatively young crypto market.
The very first on-chain analysis tool suggested was inflows to exchanges and Gradwell said this tool allows the trader to look at the number of coins that market participants are willing to sell.
On the other hand, trade intensity is another on-chain data indicator that shows the relationship between volume and exchange inflows.
The Fear & Greed Index measures the overall sentiment of the participants in the market, and it has hit year-low values, which is generally a good indicator for the market.
Recently, the index touched 10, which represents an extreme fear condition in the market, and right after that, Bitcoin and other cryptocurrencies in the market started to surge in value.
Earlier, the index touched 10 in the month of March 2020 and following that, the price of Bitcoin recovered immediately.