Definition ∞ On-Chain Cycle Analysis involves studying data directly recorded on a blockchain to identify recurring patterns and trends in market behavior. This analytical approach examines metrics such as transaction volume, holder distribution, and coin dormancy to understand market sentiment and predict future price movements. It provides insights into the actions of market participants that are not always visible through traditional market data. This analysis helps discern the underlying health and activity of a digital asset network.
Context ∞ On-Chain Cycle Analysis is a sophisticated method frequently employed by expert analysts in the cryptocurrency space to forecast market tops and bottoms. News reports often cite findings from this analysis to provide a deeper understanding of market dynamics beyond simple price charts. The ongoing discussion involves refining these models to account for new market participants and evolving on-chain behaviors.