[Glossary] Market Analysis & Signals Terms

CryptoKas

Below is a comprehensive glossary of key terms you’ll encounter in Market Analysis & Signals discussions. Definitions are clear and concise—ideal for anyone looking to sharpen their market radar.

Price & Trend Terms

Price Action: The movement of a coin’s price over time, tracked on a chart to identify patterns and momentum.
Trend: The overall direction of price movement. An uptrend has higher highs and higher lows; a downtrend has lower highs and lower lows; sideways means range-bound.
Breakout: When price moves decisively beyond a support or resistance level, often kicking off a new trend.
Consolidation: When price trades within a tight range, reflecting market indecision before the next major move.
Pump & Dump: A rapid spike in price (pump) followed by a swift sell-off (dump), often driven by coordinated buying and selling.
Volatility: How sharply price swings over a period—higher volatility means bigger, faster moves.

Volume & Liquidity Terms

Volume: The total number of coins traded during a specific timeframe. Spikes in volume can confirm the strength of a price move.
Liquidity: How easily you can buy or sell without causing a big price change. High liquidity means tighter spreads and faster fills.
Order Book: A live list of buy (bids) and sell (asks) orders on an exchange, sorted by price level.
Bid–Ask Spread: The gap between the highest bid and the lowest ask. Narrower spreads indicate a more liquid market.
Slippage: The difference between the expected price of a trade and the actual fill price, common in fast markets.
Market Depth: The total volume available at each price level, showing how much the market can absorb before price shifts.

On-Chain Data Terms

On-Chain Data: Transaction and network activity recorded on the blockchain—fully transparent and tamper-proof.
Transaction Count: Number of transactions confirmed in a given period, reflecting network usage.
Active Addresses: Unique wallets that have sent or received coins—an indicator of user engagement.
Exchange Inflow/Outflow: Coins moving into (inflow) or out of (outflow) exchanges. Inflows may precede selling pressure; outflows often signal accumulation.
Whale Transaction: A single, unusually large transfer by a major holder—can foreshadow big price moves.
Gas Fees: Fees paid to miners or validators for processing transactions; high fees can signal network congestion.

Signals & Alerts

Signal: A data-driven cue suggesting a potential trade opportunity, based on price, volume, or on-chain metrics.
Alert: A customizable notification that triggers when your specified conditions (e.g., price crosses a threshold) are met.
Order Flow: The pattern of buy and sell orders hitting the market, used to gauge short-term supply/demand.
Sentiment: The overall mood of traders—bullish when optimistic, bearish when pessimistic.
Fear & Greed Index: A gauge (0–100) that summarizes market emotion, from extreme fear to extreme greed.
Social Sentiment: Analysis of online chatter (forums, Twitter, Reddit) to assess crowd bias toward an asset.

Advanced Data Metrics

Market Cap: Total value of all tokens in circulation (current price × circulating supply), used to compare project size.
Correlation: A statistical measure (–1 to +1) showing how closely two assets move together.
NVT Ratio (Network Value to Transactions): Market cap divided by daily transaction volume—high values can indicate overvaluation.
MVRV Ratio (Market Value to Realized Value): Compares market cap with the value at which coins last moved—high MVRV can signal profit-taking.
Open Interest: Total number of outstanding derivative contracts (futures/options); rising open interest alongside price often confirms a strong trend.

Feel free to pin this thread as your go-to reference. If you spot any missing terms or need more examples, drop a comment below!