Why Everyone Talks About HODL WAVES? 🤔👇
HODL Waves break down the Bitcoin supply into different age groups to understand how long coins have been held onto. In addition, it pays attention to when older Bitcoin is being spent or moved. That's important because it can influence market trends. In a way more simplified way, HODL Waves check if the money is active or just sitting still. By studying these HODL waves over different market cycles, we can learn how wealth transfers occur during times of market highs and lows, especially when Bitcoin reaches all-time highs in value.
The chart I left below, uses colors to show when different types of Bitcoin (based on how long they've been held) are active. Hot colors typically mean more activity, while cooler colors indicate less activity. During market peaks and lows, there's often a shift in wealth from long-term holders to new buyers. This is visible in the movements of younger coins (those that haven't been held for very long) rising in value, suggesting that older coins are being spent or traded.
#hodling #HODLWisdom #BitcoinCycles #BitcoinAlert #learntoearn $BTC