#BTC AS WE CLOSE BITCOIN HALVING, THE NUMBER OF BITCOIN HODL WAVES INCREASES.

How is the HODL Waves Bitcoin Chart useful?

The HODL Waves chart shows the amount of bitcoin held for different periods. This is useful because it can show what different groups of people in the market are doing. These groups can be simplified down to long-term holders and short-term holders.

The long-term holders are often regarded as ‘smart money’ because they are more experienced in the Bitcoin market in terms of when to buy and sell $BTC. By definition, we know that they are likely to hold older coins which are the cooler colors on the chart - blues, purples, greens. So if we see the size of those color bands on the chart reduce, we know that the longer-term ‘smart money’ players are selling their bitcoin.

As an astute investor using this chart, it may well give a clue that the price of Bitcoin may soon top out on a macro time horizon. This has certainly been the case when looking over Bitcoin’s history on the chart.

It can therefore be used as a broad Bitcoin price prediction tool as it shows when the price of Bitcoin may be going too high in a bull market and may soon reach a price top.