Profitable Wallet Share as a Crypto Bull-Market Entry Signal
Summary
This on-chain strategy tracks the share of wallets reported as profitable for a selected cryptocurrency. It retrieves daily data from IntoTheBlock and plots a smoothed version of the measure, with selectable moving-average methods and a configurable threshold. A long entry occurs when the raw wallet share crosses above that threshold; the default is 50 percent.
The script is presented as a buy-and-hold approach and defines no exit rule, so positions may remain open indefinitely. The accompanying description claims the threshold has historically identified bull-market starts, but supplies no performance statistics or supporting analysis. Daily source data may also appear coarse on lower chart timeframes, and applying the method to other listed assets does not establish that its signal is reliable for them.
Key ideas
- The strategy uses the percentage of profitable wallets as an on-chain market signal.
- Daily data is sourced from IntoTheBlock for a selectable cryptocurrency.
- A long position is opened when wallet profitability crosses above the configurable threshold.
- Smoothing options affect the plotted series, while the stated entry check uses the wallet measure.
- The approach has no exit rule, and the document provides no performance statistics.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.