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Bitcoin HODL Waves Chart

Price update 21 minutes ago
UTXO update 21 minute(s) ago

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Bitcoin HODL Waves Explained

The HODL Waves are one of the earliest and most insightful on-chain analysis tools, visualizing the age distribution of Bitcoin's entire supply over time.

What Does This Chart Show?

This chart displays the age distribution of Bitcoin's UTXO (Unspent Transaction Output) set from the genesis block onwards:

  • Warmer colors (reds, oranges) at the bottom show recently moved Bitcoin
  • Cooler colors (blues, greens) at the top show Bitcoin that hasn't moved in years
  • The y-axis shows the percentage of total supply in each age band
  • The white line shows the USD/BTC price (logarithmic scale)

How to Read the Chart

The chart reveals key market behaviors:

  • Spikes in warm colors indicate large amounts of Bitcoin suddenly moving
  • Growing cool-colored bands show accumulation of long-term holders
  • The interaction between these patterns reveals market cycles

Historical Context

This visualization was pioneered by Unchained - you can read their original groundbreaking analysis in their blog post introducing HODL Waves.

Why This Matters

HODL Waves provide unique insights that are impossible to get with traditional assets:

  • Shows the complete history of Bitcoin ownership patterns
  • Helps identify accumulation and distribution phases
  • Reveals how different holder groups behave during market cycles
  • Only possible due to Bitcoin's transparent blockchain

The information provided is for educational and informational purposes only and should not be considered financial advice. The opinions expressed herein are solely those of the author and do not constitute a recommendation or endorsement for any specific investment strategy or action. Cryptocurrency investments carry risks, and you should consult with a qualified financial advisor before making any investment decisions. The author is not responsible for any losses or damages arising from the use of this chart.

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