Bitcoin Magazine will be looking at Bitcoin’s On-Chain Index (BTC), more specifically the HODL wave, to determine the age of the coins currently moving.
The HODL Wave indicator shows the percentage of BTC 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 a 3-6 month HODL wave is on the order of 20%, it means that 20% of the total BTC supply has shifted 3 to 6 months earlier.
When looking at the indicator, the first thing you notice is the increase in the 6-12 month band (blue circle). This happens due to a decrease in bands smaller than 6 months while those larger than 12 months remain the same.
Bands less than 6 months old have been in decline since June. This means that BTC was bought about six months before June, has yet to move, instead it has matured into the larger six month band, allowing the 6-12 month band to be increased.
The source: Glass knot
As mentioned above, the 3-6 month band has been falling since June. At that time it had a peak value of 15%, currently it is 7%.
In June, the pool includes people who purchased BTC between December 2020 and February 2021 (vertical black lines). With these BTC now maturing to the 6-12 month band, it means those who bought during this time will not sell but will continue to hold.
The source: Glass knot
Interestingly, there has been an increase in the 1-week – 3-month bands since October, which can also be attributed to a decrease in the 3-6-month band.
That means people who bought between April and July 2021 are now selling. Since the 3-6 month range also decreased in October, it is more likely that sellers bought in July rather than April.
This shows that bottom fishermen started taking profits in July.
The source: Glass knot
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
SN_Nour
According to Beincrypto
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
BlackRock Bitcoin ETF startled the financial markets, with $1.1 billion of trading volume said to…
Spot Ethereum ETFs may start trading any day now.
Binance.US in Washington will halt operations on August 20, 2024, due to regulatory issues.
SEC Chair Gary Gensler stated that the spot Ethereum ETF approval is progressing smoothly.
London, United Kingdom, 25th June 2024, Chainwire
Chicago, United States, 25th June 2024, Chainwire
This website uses cookies.