The cryptocurrency market is one of the newest financial markets in the world. This market has many fluctuations, which is challenging to analyze because it has yet to be discovered. For this reason, we need to try many analysis methods for this market to find the bests of them.
We must use many analysis methods to check the cryptocurrency market, and finally, by combining them, we will achieve an integrated solution. We can use technical, fundamental, and sentimental analysis methods to analyze the present situation of other markets and predict the market’s probable future behavior.
In the cryptocurrency market, all these methods, along with such analysis, can help to understand the market conditions. The Glassnode site is one of the best platforms for accessing on-chain data and analyzing them. In this article, we are going to examine the Glass Node site.
In traditional markets or cryptocurrency’s modern markets, we need some instruments to assist traders in predicting the markets, behavior hours, or days ahead. However, many factors affect the market situation. Still, the market trend, an analysis of the market participants’ behavior, would be good data to process.
But the GlassNode site is a platform that collects necessary information with access to the on-chain might be helpful for traders.
What is Glassnode?
Glassnode is an analysis platform in the cryptocurrency market that extracts on-chain data from various blockchains and provides it to users. Glassoode is a German company whose history is back to 2018, but its headquarters is in Zug, Switzerland, now.
Interested people can use the Glass node site to get the information they can find nowhere, like charts we see on the TradingView or the CoinMarketCap sites. The Glassnode is a platform that collects on-chain data from various blockchain networks and presents to its nevertheless Proof of Work or Proof of Stake consensus algorithms.
It gathers all the necessary information for its users. To better understand how Glassnode works, we will review different cryptocurrency market analysis methods before finding out how to use it.
Introducing Various Methods of Cryptocurrency Market Analysis
As mentioned earlier in the introduction, there are methods market participants can use to analyze the cryptocurrency market. These methods include:
- Technical analysis
- Fundamental analysis
- Sentimental analysis
- On-Chain analysis
Technical analysis is a tool for checking and predicting price movement in financial markets. In this method, analysts will assess the future price of an asset by using historical price charts. In technical analysis, we assume that the trader can identify the market’s previous price patterns to predict the market’s future behavior for their investments. They also can predict the future price path of the market.
In simpler terms, in technical analysis, the trader predicts the future of an asset by examining its historical record in different time profiles. In this method, analysts analyze the asset’s price patterns, and assess its future performance, regardless of the intrinsic value of an asset, only according to the behavior of its price in the past and using various charts and tools.
In fundamental analysis, analysts use various factors to investigate the value of a project, including financial reports, project goals, its role in the industry’s future, etc., to examine a project’s fundamentals.
The tools that analysts use to examine the fundamentals of a project include:
- Examining the opportunities ahead of the project and identifying its potential.
- How to develop the project ecosystem.
- Technomic review of the project.
- project team.
- Examining the road map or project roadmap.
- project investors.
In this method, analysts examine the sentiments of market users. The supply and demand ratio determines a project’s value in all financial markets. One of the main factors in determining the supply and demand ratio is examining people’s feelings toward the market or an asset.
Market sentiment represents the collective attitude of investors towards an investment or market and has significant power over market cycles.
The intra-chain analysis is only specific to the cryptocurrency market. Due to the transparency in the blockchain, all users can know the details of the transactions in the network. In simpler terms, all data is recorded in the blockchain and is available to the public.
This feature makes transparent and immutable transaction data and provide analysts with beneficial information about what is happening in the network.
Using any market analysis method alone cannot correctly determine the market’s future. But there should be an integrated method that examines all data using all the analyzing techniques mentioned earlier in the cryptocurrency market. In that case, the achieved result might be the closest and the best strategy for investing to take.
Introducing the Glassnode Services
The Glassnode site consists of 3 different parts, which are:
- Studio: In this section, users can access various graphs and features that Glassnode provides.
- Insights: In this section of the platform, such weekly reports are prepared by GlassNode analysts regularly and are provided to users for free. These reports are published on Mondays every week.
- Pricing: In this section, charts and price details of site services are displayed to users. T1 charts on the GlassNode site are free and can be used only by opening an account, But to access other charts, you have to pay a monthly subscription to the GlassNode site.
Entering, staying, and succeeding in financial markets depend on several factors. The main one is having enough knowledge about the market. In the new market of cryptocurrencies with less than two decades, we have no specific historical patterns, which makes it necessary to collect data more carefully. Many methods assist traders in choosing the best strategy to get the best possible result.
Still, most traders can choose one or two ways because focusing on all is almost impossible because it takes lots of time and even might be useless information because that adequate time is passed. That trade will bring no benefit to the trader. The Switzerland-based German platform is a website that gathers information processes and gives classified and collected information to its users that directly comes from the Glassnode access to the on-chain information and are highly trustable due to the transparent and secure nature of the blockchain networks.
However, we recommend that traders rely only partially on the Glasnode information. Still, the released data by the Glassnode platform could be an excellent supplemental instrument to determine the condition of the market in the future.