On-Chain Market Cycle

Definition ∞ An On-Chain Market Cycle refers to recurring phases of accumulation, distribution, and price movements observed directly on a blockchain. This analytical framework utilizes data recorded on public ledgers, such as transaction volumes, holder behavior, and supply dynamics, to identify distinct stages of market behavior. Unlike traditional market cycles, on-chain cycles offer granular insights into the actions of various participant cohorts, providing a more transparent view of underlying market structure. These cycles help predict shifts in investor sentiment and asset valuation.
Context ∞ On-Chain Market Cycles are a primary analytical tool in crypto news, offering a data-driven perspective on Bitcoin and altcoin trends. Discussions frequently contrast on-chain observations with traditional technical analysis to provide a comprehensive market outlook. The increasing sophistication of on-chain metrics allows for more precise identification of market turning points and investor behavior.