Analyst: How to Identify Key Price Support and Respond to Market Trend Changes

According to analyst Murphy on X, the concepts of support and resistance levels are very common in traders' candlestick techniques. These prices are usually derived through volume-price analysis, moving averages, and other technical theories. On-chain data analysis is no exception, where "price support" reflects the consistency of investor behavior, break-even points, market sentiment and supply-demand relationships. Although we have firm confidence in the continuation of the bull market cycle, there is always uncertainty in the market. Once the market trend deviates from expectations, it's necessary to be prepared with a response strategy.

Here are some important data points for traders as references: 
1. Short-term holder cost price (STH-RPC,$63,400) - If Bitcoin's price stays above this level then the trend may continue upwards. If it falls below this level then it might take longer for recovery or even possibly turn bearish.
2. Market Value to Realized Value Ratio (MVRV deviation,$56,400) - Through this indicator we can measure average unrealized profits of investors in order to assess current bubble levels within markets. Historically speaking this has been a strong support level.
3. True Market Price (TMMP) and Active Investor Price (AIP,$48,400 and $53 800) - These two indicators provide key levels for determining macro-market bullish or bearish states.The buffer zone between these two prices serves as a strong market support.

Through these key data points traders can better understand and predict market trends while formulating corresponding trading strategies.