 Welcome to the last set of news to get top stories in crypto and bring on a bite-sized piece. So today, what I want to share with you is I think something that is overlooked by the masses and something that I think is super important if we just understand how to do it. And that is called on-chain analysis. Thankfully for us, I had a key young Jew. I reach out to him. He's the CEO of CryptoQuant. And I asked him to be on the show just to teach me and everybody that's watching this video exactly how to use on-chain analysis. So Key, man, I got to say thanks so much for coming on. I think it's going to be a lifesaver for a lot of people. Thank you so much for having me. Yeah, no problem. So just real quick, anybody who doesn't know Key, he is one of the top people in blockchain technology in the top 100 as rated by Cointelegraph. He's a CEO of South Korean on-chain and analytics resource CryptoQuant. And it is the on-chain analysis I've been using pretty much exclusively when I talk about my three favorite ones, which is mining or what miners are selling, the ETH and how much is actually on the exchanges as well as Bitcoin, what's on the exchanges. So Key, just real quick before we get going, tell us why did you start CryptoQuant for on-chain analysis? Because I got to tell you, to me some of the thing is pretty confusing. So I'm glad you're here. But why did you start CryptoQuant? So I was just an ape trader since two years ago. Because people just have religious belief and there's no databases. They just trade, right? Yes. Smart chart looks good and then just buy it. So I was the kind of trader and I lose a lot of money, got liquidated 100 times. And then I realized that, okay, I need some databases to make more profit trading, for profit trading. So that's why I started this data business for retail investors. So actually, I was running a company to build anti-money laundering solution. So we've been closely working with Korean police, Korean prosecutor services to investigate money laundering cases. So we actually solved a lot of money laundering cases before. So we have on-chain data a lot, especially interest labels. So that's where we started. Perfect. And then not to interrupt, but my thought is this, we have a big problem here in America with some politicians saying that blockchain and digital asset technology is going to lead to illicit activity. So that's good to see that somebody can say, no, it does the exact opposite. And it's where things are going. And actually, the bad guys don't really want to put all their transactions on a public blockchain. It makes no sense. So it makes sense to me, Ki. Thanks. Sorry, keep going. So, yeah, that's where I started. And after I started starting this business, I have some kind of my standards about how to invest. And these standards are really helpful because trading is all about scenarios. You have to have data insights to back up your scenario. Right. Yeah. So based on those data, you can build the price movement, a scenario of a price movement. And then if you set up those scenarios, your thoughts, your training would be more solid. You're not going to take your, realize your loss when just those fifth sauce, fourth regions are happening. Like, yes, can you remember yesterday? Yesterday was crazy, like price was, yeah. For a little recap, because people are going to be watching this on YouTube, or they're going to be watching at DanTeachersCrypto.com, is that today is November 11, 2021. And yesterday was November 10. And what we saw was a pretty big dip from Bitcoin reaching an all-time high. I want to say it hit 69,000, 68,000, 69,000 somewhere on there. And almost immediately, you saw a lot of whale action people selling because once it hits all-time highs and just took a big dip, a big dip, which is not a big thing in crypto, but that's what happened. 62K. Yeah, from 69 to 62K. Pretty big deal. And if you're not familiar with these swings, this is a scary time. But for crypto, it's just a Wednesday. So, yeah. All right. So, Key, you're telling us, this makes a lot of sense, you wanted to create something that could actually help you as a trader because you're losing a bunch of money here and there. So, let's get into the data. The big thing I brought you on here is, why do we need on-chain analysis? And what does Key, the CEO of CryptoQuant, look at every single day to make trades profitable? So, Key, I'm going to pull up your website, CryptoQuant, show us, first of all, what we should be looking at and go through it. So, the first one is, take her by volume. Okay. So, I've got that in my favorite because I cheated and you told me which is a good one. So, it's this one. Let me pull this on full screen. So, talk to us about this. Take her by volume. Yeah. Can you click minute chart? Okay, Key. So, it's on the minute. Now, what are we looking at? You can see, take her by volume, scarrocketed. And if you see hourly data. Okay. Let me switch to the hourly real quick. So, I got you. So, it's an inversion. So, it looks like when you've got a massive amount of buy volume, the price seems to, like right here, like if we see this big huge spike. Huge bounce, right? Right. So, those dips are pretty much manipulated. You know what I mean? So, they just make a dip and then buy a huge amount of bitcoin through the market order. So, when this data scarrocketed, the price is likely to go up in the long term. And if those buying were not from casacade liquidations, like short speeds, that would be great. It's healthy buying. So, you can compare these with short liquidations data. So, there was a 1.6 billion worth bitcoin buying before ETF approval. Take a buy volume scarrocketed and price went from 52K to 60K right away. But there was no short liquidity. There was short liquidations looks pretty flat. And buy volume scarrocketed. These are pure buying. So, these kind of whale buying activities happens when whales want to keep support, like 60K support. There was huge buying when the price touches 60K every time. So, I specifically, I set an alert for this for the threshold is $250 million. Wow. Okay. So, it looks to me like, if you're looking at, because I remember this time frame, I remember even James over to Best Answers said that he had some buy orders in exactly as it hit the 60K support level because everything started to get gobbled up at that price level. Either that was by TA or by design or just, you know, I could say like big whale activity. But it's interesting to note that if you can take a look at your technical analysis, then come over here and say, look, every time at 60K gets bought up and here's the volume, well, it can just reaffirm what you've been thinking, become a little bit better of a trader. Sounds good? Yeah. My scenario was whales who bought Bitcoin at 60K, they want more profit. Like, they can't be satisfied just five, four, five or, you know, three to five percent profit, right? They want to go more. So, I think the price really is likely to continue. But I'll explain this later, but that market is pretty over-leveraged. So, I recommend that you use over-leveraged on your loans. Gotcha. Okay. So, the one that we should be looking at for sure is all-exchange taker by volume. They can find that crypto quant. And when things start to, when you see this volume increase, expect the prices to go a little bit decrease. Prices likely to go up in the long term. In the long term. So, when you see something like this in the long term, it'll go up. Okay. So, now we've got that one. What's the next one we should take a look at? Estimated leverage ratio. Okay. This one was an interesting one because I hadn't been looking at that. I'd just been looking at just the amount of leverages that happen just by market. So, we're taking a look at leverage ratio. Let's make this full screen. Show us, talk to us about this one. This data is calculated by open interest divided by exchange balance, which is used by collateral. So, that's why it's estimated leverage ratio. Okay. The absolute value is not important. It's important to see the trend and relatively how those trend changes. So, when this value goes above like 0.18. Right. Right around here. Yeah. Which is now it's super high. Speaking of which. It just hit all-time high. Oh, no. The price is likely to plunge or go up by cascaded liquidations. So, we'll see volatility in the short term by cascaded liquidations. Right. Can you also move your mouse closer when those value peaks? Like right here? Like at 2? Before that, like September, yeah, that one. That one was local top, right? Right. Before that one, it was local bottom. And it specifically predicted the dip predicted local top on May as well. Yeah. And then here, interesting. So, we know that since we're at an all-time high for the estimated leverage ratio, expect some extreme volatility right now. I think there's a lot of whales in play thinking that either they're going to go short, they're going to go long, and there's going to be somebody who gets liquidated like crazy. And then before you know it, you're going to see a lot of people losing a lot of money. That's how I see it. Yeah. Okay. Got that one. So, Key, what's the next one we should be looking at every day? Next one is exchange reserve. Yes. And this is the one that I talk about like all the time. Let's just take a look at real quick the Bitcoin exchange reserve. So, one of the reasons why I liked your company was because when I signed up for it for a trial, you guys had a nice little email autoresponder set up and you would say, look at these and this is what it's for and just set this up like so. So, like this one made it made a lot of sense to me. The more that the exchange reserve meaning the amount of Bitcoin that it's on the exchange that starts to plummet because people take off Bitcoin, that means they don't want to sell it because they're taking it off the exchange, usually the price goes up pretty high. This one looks, there's a pretty wide variance in this one. I haven't seen this like this. Oh, this is per the day, I see. Okay. But yeah. So, we had a massive amount of people putting their Bitcoin around October on the exchanges probably selling a little bit and they sort of take it off and the price follows, correct? Yeah. So, exchange Bitcoin balance is kind of sell side liquidity, sell side liquidity. Right. So, when you decide to sell Bitcoin, you have to send your Bitcoins to exchanges. So, if you zoom in the most recent data, you can see whales accumulation through OTC deals. So, basically, institutions like MicroStrategy, they request to buy some Bitcoins through some brokerage firm like Coinbase Prime and then these guys buying Bitcoins really quietly and then they send huge amount of Bitcoins to Coinbase custody wallets, which is not labeled by exchanges. So, we've been seeing a massive exodus from exchanges to custody wallets last year and then price like going up skyrocketed. Then when selling pressure started to go up, exchange reserve was going up and if you see the latest data, it kept decreasing, right? So, we'll see. I assume the second full run just started. Okay. Yeah. I like that news. Yeah. Because as we sort of see that people are like, okay, I'm going to take it off the exchanges into the custody and if it's MicroStrategy, you know it's not leaving those custody wallets. They're going to keep it for per Michael Saylor a very, very long time until I guess the end of time. So, if we see that and we have the same demand but not the same supply because it goes down, price usually follows. Okay. And then if we... So, that was that piece and then, I mean, we can see the same exact thing also as well. I like to take a look at the Ethereum all exchange reserves as well just because just to see where Ethereum is going and where Ethereum is going is up. I can just... It's even more pronounced here. Ki, what do you see here? So, Ethereum reserve was keep declining because of thriving Web3 apps. Yes. So, if you compare those data with Bitcoin reserve, Bitcoin reserve was fluctuating or going sideways, but Ethereum reserve was keep declining. Right. So, those Ethereum goes to smart contracts, for example, Ethereum 2.0 or staking some DeFi projects. There are so many use cases for Ethereum. That's why there are more Ethereum outflows. It makes total sense. It's what I've been talking on this channel for quite some time. If a project has, I mean, a good team, they have good people behind it, but also it has real world utility, it gets used, you're going to see a scarcity and the price usually should go up. That makes a lot of sense. All right. And Ki, what's the next ones we should take a look at? The last one we should take a look at. So, the last one is MBRV. All right. Market of value to realize value. This is the interesting one to me. So, explain this to us. Why should we be looking at this every day? Not every day, but this is all time winning indicator. So, whenever this MBRV indicator goes below one, it was like lifetime buying opportunity because... Oh, yeah. Wow. Look at those. You're right. It's like global bottom. I see. So, this is, if you really want to take a look at what's the bottom, this could be it. And you're saying this is like a nice leading indicator. I mean, even if you hit this on a... So, this is the 13th of March when Bitcoin was $5,100. 18th of March, it was $6,100. Even if you just were like sleeping, you're like, I don't have time to check this. You're a couple of days late. Imagine buying it back here. And then, of course, it goes... And here was the bottom, bottom, bottom. 15th December, 2018. Oh, I remember those days. Man. Actually, I told my wife, I go, if you're going to buy it, and I bought it, I told her to buy around here, around six grand because I missed it. But she bought a bunch and everything worked out. I bought a bunch. Everything was good. I can see it. So, how about over here? Now, it's not at one. We're at like 1.6. But the value, it kind of matches up in July, 19th of July, 2021. And we were at 20... Oh, wow. 29,000. Yeah. This MBRB is calculated by market value, market cap divided by realized cap. Say that again, Key. It's market cap divided by... ...divided by realized cap. Realized cap. Realized cap. Okay. And realized cap is calculated by supply, multiply whenever the transaction happens, the realized price. So, in this situation, if you're seeing this, the market value to realize value, it would see it go, I mean, definitely below, below, below with actual prices, which was, I think, about right here, actually. It kind of jumped up. This is 12th of April, when we hit one of the all-time highs back then, 63,000. But the Bitcoin market value, to realize value, I think was a little bit lower. So, maybe that was a good indicator of, hey, we actually hit a top. Am I seeing that right or am I seeing that wrong? Yeah. People think if this value goes above 3.5, that's going to be a sales opportunity. Perfect. So, we're looking at... I would recommend the central alert for this. How do we do that? This ought to be good. Let me show you. Okay. So, walk me through it. Can we do it from right here, this little bell? Yeah. Click the bell. Okay. And MBRB goes below 1. Okay. Yeah. And that's it. You can click channels. Resolution is stay. Resolution is day. Okay. Yeah. Type recurring. Yep. Cool down. What's this? Oh, before I can fire again. Okay. And then channels. Oh, that's pretty great. I can do email and browser. Very nice. And then the notes I could put in here, which would be to... Lifetime buying opportunity. Lifetime buying opportunity. Yeah. So, when you said use major media says Bitcoin is dead and price like dipped really hard. Yeah. You might want to check MBRB. Got you. Hey, Key, what was the other one where it was above something? Above 4.5? 3.5. So, 3.5. Yeah. The day of recurring cool down. Email. We've hit the top. So, okay. Perfect. Now, I'm good. I don't have to deal with this nonsense about what happened in 2017 with me. All right. Great. So, close. Now, again, this is just financial opinion, not financial advice. The things that me and Key are talking about are just our beliefs and what is going on with the market. Of course, it's up to you to do your own research and to sell and buy what you think is good and when you think it is good for you and, of course, your family. So, little nice. Get that out of the way first. So, Key, anything else we have to take a look at? That's it for now, I think. Yeah. That's it for now. So, what I'm going to say is this, that was a lot of information compressed into a little bit of time. What we'll do is, me and Key, we're going to do some more advanced training on on-chain analysis, which we will put over to this website that's always above my head, DanTeachersCrypto.com, and we'll put the basics also, you're watching this on YouTube, but we'll also put this in DanTeachersCrypto and we'll put that into the investing part. But Key, that is it for this one. I want to say thanks so much for your time. I've learned a lot. I think people will learn a lot. And this is just one of the things people should look at. It's a plethora of information that they should get out there. But before we take off, two things. One, if you want to sign up for CryptoQuant, the link is in the description. It's at the very top. You can check it all out. And then the second thing is, Key, do you have any words of wisdom for people experiencing this bull run for the first time? So I think the current market is over-leveraged. So please don't use over-leveraged on your lungs. But it's a good time to buy through the small market, not the everyday market. Because we have a ratio is too high, which can cause a lot of whipsaws and blue trap. But eventually, prices likely to grow up in the long-term as extreme supply is decreasing. We might see a sales side liquidity shock in the long-term. Let's hope so. Okay, awesome. So look, that's it for today. If you stuck with us all the way to the end, first of all, you're probably a smarter investor for doing it. Thanks so much. We appreciate it. Hit the like button. If you liked the video, found some value. Also consider subscribing. These things are going to come fast in the fierce, especially over the next weeks and months as this bull run hopefully continues. So thanks so much for watching. We appreciate it. And me and Key will see you in the next one.