Bitcoin HODL waves show that this cycle is completely the same as all others

If you look at the Bitcoin (BTC) price performance graph over the past few months, you will see a seesaw chart, with more drops than gains.

While the current market cycle may look different than previous cycles, the HODL wave indicator shows that it is not much different from previous cycles.

The HODL Wave Metric is a graph that groups the Bitcoin supply in circulation into different age groups and shows how these age groups have changed over time.

Charts allow you to see what each group of market participants is doing with Bitcoin and identify which groups are selling.

Looking at Glassnode’s Bitcoin Realized Cap HODL wave chart analyzed by CryptoSlate’s research, short-term holders with a 6- to 12-month horizon typically buy flagship assets during bull markets when prices are near or at the high end. became clear to do.

Most of these holders bought about six months after the market peaked.

Bitcoin prices usually fall quickly, and these short-term holders suffer unrealized losses.

Buying short-term holders means long-term holders are selling to new market participants. This unfolds in most market cycles, especially he in 2013, 2017 and 2021.

However, the 1-2 year HODL wave after 2021 is different. The HODL wave has also decreased, indicating that some were sold at the peak of the bull market, but at a much lower percentage.

About 60% of the supply remained, even as prices plummeted. An explanation for this could be due to long-term holders’ beliefs, or it could be that BTC was under the surface because they bought at the highest price when it was close to ATH.

On the other hand, 2-3 year holders make up a large percentage of the holding supply. However, this cycle is significantly smaller than his two previous cycles. Therefore, we have to wait for this cohort to mature. This will further strengthen our network with those who purchased the 2021 Peak Top.

In conclusion, the HODL wave metric shows that this cycle is the same as the others and there are no differences.