Crypto Market Metrics (Advanced) and How to Use them
Stuff you can't learn on YouTube. Only screentime.
What You Will Need
A tradingview.com account (free plan works fine).
Every crypto investor should have this as it gives you free access to charts across every exchange and even DEX (decentralized exchange) in crypto.
You do not need to be looking at the charts all day, in fact, just sticking to looking for major trends in the 1 Week or even 1 Month timeframe, or to be more active the 1 Day timeframe is fine.
I suggest making a habit of checking the indicators below once or twice a week to get a sense of the ‘health’ of the crypto market.
With tradingview, you can click the + sign on the top right when you make a watchlist, and then add in any text into the search bar and it will populate.
For single coin charts e.g. ETHUSDT you want to pick major brand exchanges like Binance as they will show the most volume.
Ratios as described below can also be entered into this search bar and you can get pretty creative with it.
Metrics
TOTAL - this shows the total market capitalization of the entire crypto market and therefore is a way to check the total inflow and outflow of capital into the entire crypto market
TOTAL2 (ALL MINUS BTC) - same as above but for every crypto asset except BTC. Use this for keeping an eye on whether capital is flowing in/out of altcoins or just BTC and relative strength of that.
TOTAL3 (ALTCOINS ONLY AKA MINUS ETH) - same as above but for every crypto asset minus BTC and ETH. Use this for keeping an eye on whether capital is flowing in/out of the *most risk on* assets.
TOTAL2/BTC, TOTAL3/BTC - the above as ratios over BTC price. Similar to how altcoin-BTC pairs can be used. Makes it easier to see relative strength of BTC vs other altcoins.
Enter as shown (with the slash, like an equation). It will not populate in the results but press enter and it will show in your watchlist on the right.
100-BTC.D (ALTCOIN DOMINANCE) - the inverse of which is BTC.D. This is the % Dominance of the total market capitalization. This is our own equation we make in the search bar, it will not populate in the results but just enter it as shown and it will work and show up in your watchlist to the right.
ETH/BTC - arguably the most important metric of all. Shows ETH ratio over BTC and is a sign of health of the altcoins and entire market whether it is risk-on or risk-off.
ETHBTC seasonality as shown. Err on the side of history until proven wrong.
Generally, we want to be long ETH/BTC from Q4 into Q1, and then expect a ‘peak’ of ETHBTC into May or early summer. Historically ETH tends to have no major net change during Q2-Q3.
DEFIPERP/BTC (DEFI INDEX ON FTX) - basket of DeFi coins on FTX, See FTX documentation for which coins are included in this basket and if/when it changes. Shows health of DeFi, and this ratio can and should be made over ETH to see DeFi health vs. ETH.
MIDPERP/BTC (MIDCAPS INDEX ON FTX)- basket of midcaps on FTX. See FTX documentation for what is counted in this index.
SHITPERP/BTC (SHITCOIN INDEX ON FTX) - basket of lowcap “shitcoins” on FTX. Documentation for the Index.
ETH.D - Eth dominance
ADA.D+DOT.D+SOL.D etc. - These can be combined as desired.
Shows that the combined dominance of ADA, DOT, SOL, LUNA is up 605% from Dec 2020 to Sep 2021.
Ratios of L1’s vs L1, e.g. DOTUSD/SOLUSD or DOTPERP/SOLPERP - similar idea to a BTC pair but just a ratio of one coin against another - in stocks an example of doing similar would be TSLA/AAPL for example.
ADA/ETH and ETH pairs - see if “ETH competitors” are stronger vs ETH or not. It is good to do this with DeFi coins such as MKR/ETH or CRV/ETH as the ‘base’ currency of these protocols is ETH.
BTC/M2SL - BTC ratio over M2 Money Supply
BTC/SPX - BTC ratio over SPX (S&P 500 Index)
BTC/NDX - BTC ratio over Nasdaq
BTC/GC1! or BTC/GLD - BTC over Gold
Make your own…..
Fun Stuff
Where does it end? Nobody knows.