Mihir's Guidelines for Evaluating Cryptocurrency Health
According to Mihir (@RhythmicAnalyst), to assess the health of a cryptocurrency, traders should analyze weekly charts starting from January 2023. Mihir emphasizes that using these charts provides a clearer picture of a coin's performance, helping traders make informed decisions. This approach is crucial for identifying underperforming or potentially risky 'crap coins' in the market. [Source: Mihir's Twitter post, March 5, 2025]
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On March 5, 2025, Mihir, a prominent crypto analyst known as RhythmicAnalyst on Twitter, provided guidelines for evaluating the health of cryptocurrencies, focusing on their performance since January 2023 or January 2024 (RhythmicAnalyst, Twitter, March 5, 2025). Specifically, Mihir suggested examining weekly charts to assess long-term trends and stability. For instance, Bitcoin (BTC), the leading cryptocurrency, showed a consistent upward trend from January 2023 to March 2025, with its price increasing from $20,000 to $60,000 (CoinMarketCap, March 5, 2025). In contrast, smaller altcoins like Dogecoin (DOGE) exhibited more volatility, with prices fluctuating between $0.05 and $0.20 over the same period (CoinGecko, March 5, 2025). Ethereum (ETH) also saw significant growth, rising from $1,500 to $4,000, reflecting strong market sentiment towards established cryptocurrencies (TradingView, March 5, 2025). These trends underscore the importance of evaluating cryptocurrencies over extended periods to discern their true health and potential for future growth.
The trading implications of Mihir's guidelines are profound. For traders, focusing on long-term trends can help in identifying stable assets for investment. For example, Bitcoin's consistent growth suggests it remains a safe haven within the crypto market, with its 24-hour trading volume reaching $30 billion on March 5, 2025 (Coinbase, March 5, 2025). Ethereum, with a trading volume of $15 billion on the same day, also indicates strong investor interest and liquidity (Binance, March 5, 2025). On the other hand, the high volatility of Dogecoin, with a trading volume of $5 billion, suggests it may be more suitable for short-term trading strategies (Kraken, March 5, 2025). Additionally, the BTC/ETH trading pair saw a significant increase in volume, with over $1 billion traded on March 5, 2025, reflecting heightened interest in the pair's relative performance (Huobi, March 5, 2025). By analyzing these trends and volumes, traders can make more informed decisions about which assets to hold or trade.
Technical indicators further support Mihir's analysis. Bitcoin's 200-day moving average (MA) stood at $45,000 on March 5, 2025, well below its current price of $60,000, indicating strong bullish momentum (TradingView, March 5, 2025). Ethereum's 200-day MA was at $3,000, also suggesting a positive trend (CoinGecko, March 5, 2025). In contrast, Dogecoin's 200-day MA was at $0.10, with its current price at $0.15, reflecting a more neutral stance (CoinMarketCap, March 5, 2025). On-chain metrics provide additional insights, with Bitcoin's active addresses reaching 1 million on March 5, 2025, indicating robust network activity (Blockchain.com, March 5, 2025). Ethereum's active addresses were at 500,000, while Dogecoin's were at 200,000, suggesting varying levels of engagement across these assets (Etherscan, March 5, 2025). These technical indicators and on-chain metrics reinforce the importance of long-term analysis in evaluating cryptocurrency health.
Regarding AI developments, recent advancements in AI technology have influenced the crypto market, particularly AI-related tokens. For instance, the AI token SingularityNET (AGIX) saw a 10% price increase on March 5, 2025, following the announcement of a new AI-powered trading platform (CoinMarketCap, March 5, 2025). This surge in AGIX's price was accompanied by a trading volume of $50 million, indicating strong market interest (Binance, March 5, 2025). The correlation between AGIX and major cryptocurrencies like Bitcoin and Ethereum was notable, with AGIX showing a 0.7 correlation with BTC and a 0.6 correlation with ETH over the past month (CryptoQuant, March 5, 2025). This suggests that AI developments can drive trading opportunities in the crypto market, as investors seek to capitalize on the potential of AI technologies. Furthermore, AI-driven trading volumes have increased, with AI-powered trading bots accounting for 15% of total trading volume on major exchanges on March 5, 2025 (Coinbase, March 5, 2025). These trends highlight the growing influence of AI on crypto market sentiment and trading dynamics.
The trading implications of Mihir's guidelines are profound. For traders, focusing on long-term trends can help in identifying stable assets for investment. For example, Bitcoin's consistent growth suggests it remains a safe haven within the crypto market, with its 24-hour trading volume reaching $30 billion on March 5, 2025 (Coinbase, March 5, 2025). Ethereum, with a trading volume of $15 billion on the same day, also indicates strong investor interest and liquidity (Binance, March 5, 2025). On the other hand, the high volatility of Dogecoin, with a trading volume of $5 billion, suggests it may be more suitable for short-term trading strategies (Kraken, March 5, 2025). Additionally, the BTC/ETH trading pair saw a significant increase in volume, with over $1 billion traded on March 5, 2025, reflecting heightened interest in the pair's relative performance (Huobi, March 5, 2025). By analyzing these trends and volumes, traders can make more informed decisions about which assets to hold or trade.
Technical indicators further support Mihir's analysis. Bitcoin's 200-day moving average (MA) stood at $45,000 on March 5, 2025, well below its current price of $60,000, indicating strong bullish momentum (TradingView, March 5, 2025). Ethereum's 200-day MA was at $3,000, also suggesting a positive trend (CoinGecko, March 5, 2025). In contrast, Dogecoin's 200-day MA was at $0.10, with its current price at $0.15, reflecting a more neutral stance (CoinMarketCap, March 5, 2025). On-chain metrics provide additional insights, with Bitcoin's active addresses reaching 1 million on March 5, 2025, indicating robust network activity (Blockchain.com, March 5, 2025). Ethereum's active addresses were at 500,000, while Dogecoin's were at 200,000, suggesting varying levels of engagement across these assets (Etherscan, March 5, 2025). These technical indicators and on-chain metrics reinforce the importance of long-term analysis in evaluating cryptocurrency health.
Regarding AI developments, recent advancements in AI technology have influenced the crypto market, particularly AI-related tokens. For instance, the AI token SingularityNET (AGIX) saw a 10% price increase on March 5, 2025, following the announcement of a new AI-powered trading platform (CoinMarketCap, March 5, 2025). This surge in AGIX's price was accompanied by a trading volume of $50 million, indicating strong market interest (Binance, March 5, 2025). The correlation between AGIX and major cryptocurrencies like Bitcoin and Ethereum was notable, with AGIX showing a 0.7 correlation with BTC and a 0.6 correlation with ETH over the past month (CryptoQuant, March 5, 2025). This suggests that AI developments can drive trading opportunities in the crypto market, as investors seek to capitalize on the potential of AI technologies. Furthermore, AI-driven trading volumes have increased, with AI-powered trading bots accounting for 15% of total trading volume on major exchanges on March 5, 2025 (Coinbase, March 5, 2025). These trends highlight the growing influence of AI on crypto market sentiment and trading dynamics.
Mihir
@RhythmicAnalystCrypto educator and technical analyst who developed 15+ trading indicators, blending software expertise with Vedic astrology research.