A naukri.com initiative
Bitcoinmagazine
4w
159
Can Realized Cap HODL Waves Identify The Next Bitcoin Price Peak?
- Realized Cap HODL Waves is an adaptation of HODL waves that provides insights by weighting age bands using realized price - Bitcoin's cost basis held in wallets at any given time.
- Short-term hold of six months and below make up 80% of total realized cap during market peaks.
- Bitcoin's behavior is cyclical, and the chart gives insights to navigate Bitcoin's price cycles.
- Realized Cap HODL Waves is an invaluable tool to understand Bitcoin's price cycles and manage risk during bullish and bearish cycles.
- Bitcoin ETFs reduce the number of active on-chain addresses and transactions, making young age bands underrepresented and old age bands overrepresented in BTC.
- Increased adoption via ETFs could lead to more significant price movements that are less directly visible in on-chain data.
- Investors can use the Realized Cap HODL Waves chart to gauge market sentiment, cycle timing and strategic positioning.
- At the current level of around 55%, plenty of upside potential is available for Bitcoin before it reach the overheated territory seen near 80%.
- Combining on-chain indicators with ETF inflow data and other metrics, investors can gain comprehensive understanding of Bitcoin's price dynamics in this new era.
- This article is for informational purposes only and should not be considered financial advice.
Read Full Article
9 Likes
For uninterrupted reading, download the app