Description

The BTC HODL Wave analyzes on-chain data to show age groupings of Bitcoin holdings, spanning from less than a day to over five years. It reveals investor sentiment through shifts in holding periods, with longer holdings signaling bullish sentiment and shorter holdings indicating bearish sentiment. Moreover, it offers insights into Bitcoin market cycles, historically correlating with major price movements, such as an increase in longer-held Bitcoin preceding market peaks, aiding investors and analysts in making informed decisions.

The HODL wave is updated monthly.

Use Case

Trader

Traders often leverage the Hodl Wave to pinpoint short-term trading opportunities by monitoring shifts in holding patterns.

Analyst

Analysts utilize the Hodl Wave to gauge broader market sentiment and its potential impact on Bitcoin's price stability and future movements.

Researcher

Researchers interested in cryptocurrency market economics and behavior utilize the Hodl Wave to study accumulation, distribution, and retention patterns among Bitcoin holders.

Methodology

The Bitcoin HODL Wave's methodology begins by examining all transactions and their associated Output (UTXO). Then analyze each transaction along with its inputs. By merging these datasets, we identify spent transactions—those that appear in both inputs and outputs. This allows us to calculate the time difference between inputs and outputs and categorize them into various age buckets based on holding periods.