Phi-Deltalytics

BTC Transaction/On-Chain Volume (Basic)

Description:
Whale: Whale utilizing discounted prices (increasing on-chain volume & decreasing price)
Recovering: Positive momentum in price after potential whale activity
Cycle Volume Support: The transaction volume support during a cycle

What’s the best time to invest?
After institutions make up their mind at low price levels.

How’s on-chain volume related to whales or institutional money?
On-chain volume is contributed not only by using BTC as payment methods, but more importantly by large custodians using the BTC chain to settle internal whale trades. When OTC volume is estimated 2-3 times of exchange volume , and when total on-chain volume is only a small fraction of the exchange volume , the OTC settlement plays a big factor in moving the on-chain volume around.

Why does the price drop further after spotting whale money?
Does new money equal higher true value? Yes.
Does new money equal higher price? No.
Whales could not only ladder in when they see the price on discount , but also push the price further down to accumulate at better price levels. However, either route chosen, it’s most likely for the price to rise to a higher level compared to the level when the whales enter. Whales are here to make money after all.
Release Notes: The Quandl data source has not been updated since Dec 17, 2019. From other sources, we've so far seen a decrease in BTC transaction volume. We are currently again at the long term on-chain volume support.
Release Notes: Data issue from Quandl has been fixed.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

does this repaint ?
+1 Reply
Phi-Deltalytics Carl2021111
@Carl2021111, it doesn't. However, do wait till the daily candle closes.
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Hey is this exclusively for BTC or will it work on other Pairs?
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Phi-Deltalytics Kryptochristian
@Kryptochristian, BTC only. Quandl is the only outside data source that could be pulled into TV. As for on-chain data, they only offer limited series and BTC only, so the other pairs would be impossible to construct.
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Kryptochristian Phi-Deltalytics
@Phi-Deltalytics, Thanks greatly for the insight
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Excellent approach thanks. Please add more to the description to be able to use it. For example right now a hale signal appears on the hourly chart, but this isn't enough to tell whether to long or short. Keep adding to the description for further use. Congrats again.
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Phi-Deltalytics ariel_guerra
@ariel_guerra, thanks. Will get to there eventually. Maybe an educational idea? In the mean time, check out the idea below. Should help with understanding this indicator. It's a long term cycle indicator, and I would only use it on the daily chart. :)
+1 Reply
line 17: The function 'percentile_nearest_rank' should be called on each calculation for consistency. It is recommended to extract the call from this ternary operator.
line 34: The function 'valuewhen' should be called on each calculation for consistency. It is recommended to extract the call from this ternary operator.
line 45: The function 'barssince' should be called on each calculation for consistency. It is recommended to extract the call from this ternary operator.
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@CYMWAVE, You are right, but I don't think these will impact how the indicator looks or performs on the daily time frame. Thanks for taking such a thorough look! We'll get there once time allows. :)
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