Investor Cohort Analysis

Definition ∞ Investor Cohort Analysis examines the behavior of groups of investors based on when they first acquired an asset. This analytical method segments the investor base to understand holding periods, accumulation patterns, and selling trends specific to different entry points. It provides insights into the conviction levels and profit-taking tendencies of distinct investor groups. This analysis is valuable for discerning underlying market support or resistance levels.
Context ∞ Investor Cohort Analysis is a frequently utilized tool in on-chain analytics to understand long-term market structure. A key discussion point involves how different cohorts react to price fluctuations and macroeconomic events. Critical future developments will include the integration of more sophisticated behavioral economics models to refine predictions based on these segmented investor groups.