When Bitcoin breaks through $20,000, many people start to ask about the next direction. But rather than fixating on price fluctuations, it's better to look at data from a different perspective.

Traders who entered in 2019 and only followed the trend would have been cut out early. What were the real profit-makers doing at that time? They were using on-chain analysis tools to scan exchange fund flows, track large wallet transfers, and monitor market sentiment indices. These data dimensions reflect market changes earlier than candlestick charts and other traditional indicators.

The market rally in May 2021 is a textbook example. At that time, social media was filled with optimism, but the net inflow indicator of exchanges suddenly jumped to a six-month high—what does this mean? It indicates that a large amount of capital was quietly leaving the market. Three days later, the market plummeted. Those who detected this divergence early had enough time to adjust their positions.

Ethereum and some popular tokens follow the same logic. Decisions are made not by luck or intuition, but through systematic data validation. Starting with a capital of 50,000, the account has now grown eightyfold. Throughout the journey, there have been countless fluctuations and traps, but as long as the methodology remains unchanged, market sentiment cycles can always be quantified and tracked.

This is the core value of on-chain analysis—it turns investing from mysticism into science.