Investor cohorts are distinct groups of market participants categorized by shared characteristics, such as their acquisition time of an asset, investment size, or behavioral patterns. Analyzing these cohorts helps to understand collective market behavior and sentiment within the digital asset space. For instance, early investors might exhibit different holding patterns compared to recent buyers. This segmentation provides valuable insights into market structure and potential support or resistance levels.
Context
The study of investor cohorts is increasingly employed in on-chain analytics to gain a deeper understanding of cryptocurrency market dynamics beyond simple price charts. By tracking the movements and activities of specific groups, analysts can identify trends in accumulation, distribution, and overall market conviction. This granular approach helps to predict potential market shifts and assess the stability of an asset’s holder base.
Smaller institutions and experienced individuals are steadily buying Bitcoin while the largest whales take profits, creating a structural demand floor.
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