Skip to main content

Glassnode’s RHODL Ratio May Suggest Bitcoin Market Is Near Capitulation

Glassnode data shows the RHODL Ratio’s current trend suggests that the Bitcoin market could be near capitulation.

Data Shows Bitcoin RHODL Ratio Has Observed Decline Recently

As per the latest weekly report from Glassnode, the supply of coins older than one year has significantly risen recently.

To understand the RHODL ratio, you first need to have a look at the “realized cap HODL waves.” This indicator measures the USD-dominated amount of Bitcoin held by investors hodling since different periods of time.

For example, the wave band for coin age more than 1+ year shows the total amount of coins all investors hodling since at least a year currently own.

The “realized HODL” (or RHODL in short) ratio is a metric that tells us the ratio between the wave bands of 1-week old and 1-year old Bitcoin supplies.

When the value of this indicator reaches a high, it means new holders hold a majority of the supply at the moment. Such values usually occur during price tops.

Related Reading | Research Explains Bitcoin Mining Could Be Helpful For US Energy Independence

On the other hand, low values of the metric suggest 1+ year old age bands currently own a larger part of the total Bitcoin supply. These values of the indicator have historically been observed near market bottoms.

Now, here is a chart that shows the trend in the BTC RHODL Ratio over the history of the crypto:

Looks like the value of the indicator has seen decline recently | Source: Glassnode's The Week Onchain - Week 13, 2022

As you can see in the above graph, the Bitcoin RHODL Ratio has observed some sharp downtrend in recent months.

This trend means that the supply of 1+ year old holders is going up, while that of one-week old coins is declining.

Related Reading | Bitcoin Likely To Continue Upward Trajectory, Is $50K Its Next Target?

Also, as the chart shows, such a trend with the Bitcoin RHODL ratio heading down after a bull run has historically signaled that the market is near capitulation.

Back in 2012, however, it was rather a sign of the early bull market rather than an approach to the late stages of the bear market.

So, the current trend can go both ways, but the near capitulation phase is when these values of the indicator were observed the last two times.

BTC Price

At the time of writing, Bitcoin’s price floats around $47.8k, up 11% in the last seven days. Over the past month, the crypto has gained 27% in value.

The below chart shows the trend in the price of the coin over the last five days.

BTC's price seems to have surged up over the last couple of days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

from NewsBTC https://ift.tt/lqsm1wE
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

ENS DAO delegates offer perspective on DAO governance and decentralized identity

AlphaWallet CEO and Spruce co-founder talk about their roles as contributors to the Ethereum Name Service following the project's recent airdrop. Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community.  Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers. Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for  resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. Alpha...
Post a Comment
Read more

How Social Platform Chingari is Using Web 3.0 to Transform the Traditional Way We Use Social Media

The world is changing. This isn’t news to anyone, but sometimes it is nice to realize that—contrary to news headlines—not all the change is bad.  In fact, the last decade has seen so much innovation and so many improvements to technology that even 2015 seems like a different world.  Internet speeds, connecting with anyone globally (for free), and our ability to reach large groups of people without a middleman is nothing short of revolutionary. When it comes to technology evolution, this often happens with different iterations.  Once a system is mature, there’s a better idea of what we would like to change and improve.  We go back to the drawing board, target our creative minds at the issues, and create a new version that has evolved to better meet our needs.  The Internet has followed this model since its inception, evolving through three distinct stages.  We are only at the cusp of the third stage, called Web 3.0, with technologies such as blockchain and ...
Post a Comment
Read more

INX submits bid for Voyager Digital's assets

FTX US won a $1.4-billion bid to purchase Voyager’s assets in September, but with the firm filing for bankruptcy, the funds were once again up for grabs. Trading platform INX has submitted a bid for an undisclosed amount to purchase the assets of crypto brokerage firm Voyager Digital. In a Nov. 30 announcement, INX said it had sent a non-binding letter of intent for Voyager’s assets following the platform filing for bankruptcy in July. According to INX CEO Shy Datika, the bid was aimed at providing “credibility, technology, and unique regulatory positioning” for Voyager users seeking stability in a volatile market. Voyager’s original bankruptcy filing from the Southern District Court of New York suggested the firm could owe between $1 billion to $10 billion to more than 100,000 creditors amid a bear market and exposure to Three Arrows Capital. In September, FTX US won a $1.4-billion bid to purchase Voyager’s assets, but with FTX Group itself filing for bankruptcy in November, th...
Post a Comment
Read more