Assessing market activity in wallet analysis

We are discussing how evaluating market activity through wallet analysis can influence your trading decisions.

Market activity is an indicator that shows how actively market participants are involved in trading.

What if the market is growing, but there is no clear confidence that now is a favorable time to start buying?

These are the kinds of questions that many market participants face. By using wallet analysis as an indicator of trader activity, you can reconsider your strategy and extract profit from the market.

Let's turn to Figure 1, where we see trading activity from a smart trader.

Figure 1 – «Growth in trading activity from a smart trader from ArbitrageScanner»

Note that such a trading approach brought the trader a profit of $396K during the existence of his wallet.

The smart trader didn't even catch the bottom, but he made active purchases before the entire altcoin market rose, showing an impulse of +65%!