With almost all Short-Term Holders now underwater on their position, sentiment has shifted towards the negative. In this report, we explore several measures to track investor sentiment. We develop indicators which assess divergences between the market and observed investor behavior.

Executive Summary
We review the market position relative to two on-chain pricing models, both of which are intersected during past cycle lows, and in the March 2020 sell-off.
Patterns of accumulation and distribution tend to align with local highs and lows, and we demonstrate how this plays out in on-chain data.
A super-majority of Short-Term Holders are now underwater on their position, with a new indicator suggesting negative sentiment dominates this cohort at present.


Read more in The Week On-chain Newsletter and our latest Video Report.