Bitcoin HODL Wave Surges: On-Chain Analysis Reveals Bullish Investor Behavior

The Bitcoin HODL Wave Indicator Analysis aims to determine the age of the coins that have been traded in the past few months.

This indicator shows that there is an accumulation among medium / long-term investors. At the same time, the activity of the group of short-term owners also decreased significantly.

HODL wave

The HODL Wave indicator shows the percentage of Bitcoin that have changed hands in a given period of time. Warm colors (red, orange, yellow) represent BTCs that have recently changed hands, while cold colors (yellow, green, blue) mean that BTC has not been traded for a while.

For example, if the 1-3 month HODL wave is on the order of 10%, it means that 10% of the total BTC supply has shifted 1 to 3 months earlier.

Interesting changes

There are two interesting new changes to HODL Wave:

• Increase in the group 6 months – 12 months
• Decrease in the short-term group (less than a month)

The 6-12 month group currently has the highest annual share with 35%. This means that 35% of the total Bitcoin supply has changed hands in the past 6 to 12 months. More precisely between October 2020 and April 2021.

The rise in this pool shows that those who bought Bitcoin during this period are still holding and not taking any profits (if they were early buyers).

In addition, Bitcoin, which was bought near the historic April high, could not stop the loss. So the 6 – 12 month group increases.

The source: Glass knot

In the same period of time we can see that the group decreases again from 1 day to 1 month. The percentage of this group peaked in January 2021 and has since declined, reaching a local low in July.

Increased activity from short term owners is a sign of a market spike. Therefore, a decrease in short-term group activity combined with an increase in 6-12 month groups is a sign of accumulation before another rally.

The source: Glass knot

The following graphic shows the activity of all groups in the same period.

The source: Glass knot

You can see the Bitcoin price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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