Investor Behavior Signal

Definition ∞ An Investor Behavior Signal refers to observable actions or patterns of activity by market participants that provide indications of collective sentiment or future market direction. These signals can include trading volumes, order book dynamics, or on-chain transaction data. They offer insights into prevailing market psychology. These indicators help in predicting market shifts.
Context ∞ In the volatile cryptocurrency markets, investor behavior signals are closely monitored by analysts and traders to anticipate price movements. News articles frequently interpret these signals, such as significant whale movements or changes in exchange balances, to explain market trends and potential shifts in asset valuations. Understanding these signals is key to market analysis.