We look to be headed toward a trend of increased BTC holder accumulation following a local bitcoin price top.
The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
A key on-chain metric that we’ve discussed before, and that we will cover today, is the Realized HODL (RHODL) Ratio. The ratio uses realized cap HODL waves, which takes the original HODL Wave metric and weights the UTXOs in each age band by their realized price. Specifically the Realized HODL Ratio uses the one-week and the one-to-two-years Realized Cap HODL Age bands.
For a more in-depth overview of this metric, check out The Daily Dive: HODL Waves And Realized HODL Ratio.
By using this metric, we can better understand what’s happening with younger coins versus older coins. As younger coins become more dominant and the ratio rises, long-term holders hold less of the realized market value. As the ratio falls, long-term holders hold more market-realized value compared to younger coins. An overheated market would show much higher younger coin dominance.
In the previous bitcoin tops in 2021, we didn’t see the rise of younger coins relative to older coins like previous cycles. We saw the RHODL Ratio rise throughout the year, but it never became heated or overheated like the 2016 cycle. This can be due to a changing cycle, a more maturing market or the fact that we didn’t see the significant wave of new demand, younger coin buying, seen in past cycles.
Over the last month, we’ve seen a significant increase in the HODL Waves and Realized Cap HODL Waves one-to-two-years age bands. More coins are aging into this band and are taking up more economic weight in the RHODL Ratio calculation as more long-term held supply comes into the market. As a result, the RHODL Ratio is right around its 50th percentile inbetween a neutral and cooled state.
Historically, we’ve seen the one-to-two-years age band peak around 50% of supply, while it’s currently at 12.93%. We look to be headed into a trend of increased holder accumulation post a local bitcoin price top. As accumulation continues and older coins age in, the RHODL Ratio falls and makes bitcoin a more attractive historical buy.
Check live crypto rates here
Start trading today – See our list of exchanges
I’ve been browsing online more than three hours lately, yet I by no means found any attention-grabbing article like yours. It’s beautiful worth enough for me. In my view, if all web owners and bloggers made just right content as you probably did, the web can be much more helpful than ever before. “When there is a lack of honor in government, the morals of the whole people are poisoned.” by Herbert Clark Hoover.
Pretty! This was an incredibly wonderful article.
Many thanks for providing this information.
No records of in hospital death were identified Table 3 is cialis generic Thus, spontaneous regression may have been a possible contributing factor in this case
hello there and thank you for your info – I have definitely picked up anything new from right here. I did however expertise a few technical points using this site, since I experienced to reload the web site lots of times previous to I could get it to load correctly. I had been wondering if your web host is OK? Not that I’m complaining, but sluggish loading instances times will very frequently affect your placement in google and can damage your high quality score if advertising and marketing with Adwords. Anyway I’m adding this RSS to my e-mail and could look out for a lot more of your respective fascinating content. Make sure you update this again soon..
As he scanned over the labs, he looks up over his glasses, smiles, and says, Herd is what we are going to do cialis without prescription