"I've left all communities and unfollowed those accounts that shout signals every day."

Last week, a fan told me this, and his account had already multiplied five times.

He used to spend 8 hours daily browsing news, chasing quick updates, reading research reports, and listening to opinions. But what happened? He always reacted only after a sharp rise, and when he hesitated, he became the bagholder. Now he changed his approach, spending only 2 hours a week analyzing data, and all three of his decisions hit the entry points perfectly.

The problem isn't a lack of information—quite the opposite—news flashes, analyses, and opinions are everywhere, 99% of which are designed to capture your attention and manipulate your emotions. Most losses aren't due to a lack of market understanding but because you're overwhelmed by junk information that clouds your judgment.

I’ve developed a "Signal Distillation Tower" system, with a simple core idea: don't be a data collection machine; be a data-driven decision-maker.

**Level 1: Focus on on-chain data, they won't lie**

Spend half an hour every Monday checking three types of indicators: net flow trends of BTC and ETH on exchanges (persistent net outflows usually indicate bullishness), total stablecoin market cap changes (growth suggests new funds entering), and the open interest ratio and funding rates of contracts (extreme rates often signal risk or a rebound). These data directly reflect real fund movements.

**Level 2: Track what smart money is doing**

Use on-chain tools to monitor: the top 100 whale addresses (excluding exchanges) for increases or decreases in holdings, institutional ETF holdings, and TVL changes in leading DeFi protocols. Smart money votes with real capital; their long-term positioning is the most reliable indicator of market direction.

**Level 3: Understand the language of technical analysis**

Looking at two charts per week is enough: whether BTC weekly candles are above the EMA20, and the structural trend; check Binance sector rotation heatmaps to see if funds are focusing on certain sectors. This helps you determine what stage the market is in and where the main capital is flowing.

**Level 4: Treat news as unverified noise**

Quick news flashes and KOL opinions? View them as signals, not directives. Only consider them when supported by the first three levels of data. For new stories, see if funds are following, and verify breaking news with on-chain data. Remember: news explains price movements but doesn't determine them.

**Level 5: Summarize signals into a decision checklist**

Every Sunday, spend half an hour consolidating all signals: +1 for positive signals, 0 for no change. Only when three or more strong positive signals appear simultaneously, and there are no obvious negative signals, do you look for an entry point. Otherwise, stay on the sidelines.

The essence of this system is reversing the order of information processing—shifting from passive trend-following driven by emotion to actively analyzing data.

On-chain analysis should be gradual; don’t get overwhelmed by data. Regular summaries are more important than anything. Once you start replacing intuition with rules, and opinions with data, navigating bull and bear markets becomes much easier.