When to sell your Bitcoin? (hint: HODL waves metric)

Date: 2020-12-02 20:47:35

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Selling your Bitcoin at the right time on a massive bull market is critical for every investor to reach your investment goals. Though this can go very wrong if you sell to soon and then FOMO back in or panic sell at the wrong time. That’s why it may be good to take a look at some advanced on-chain metrics which can give us a glimpse into the macro behavior of the Bitcoin market.

One of these fascinating metrics is called Bitcoin HODL waves. Coined by Unchained Capital, HODL waves are a way to look at all the Bitcoin currently in existence and what % has been held for what period of time. This is made possible by Bitcoin’s unique accounting method called UTXO’s and the fact that Bitcoin’s blockchain is completely public for everyone to see and verify. So essentially we can look at how many Bitcoin out there are being held long term vs which ones have been sold or transacted with rapidly and in a recent timeframe.

This information is unique for the past 3 waves so far (we’re currently on our 4th one) and may give us some hints as to when the market top is coming or when the market bottom is near. I certainly will be keeping a close eye on this metric along with other onchain indicators since this is now my 2nd cycle. Give this deep dive video a watch if you want to learn more about HODL waves and everything you want to know about this topic and how it can affect YOU as a Bitcoin investor.

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Timestamps:
0:00 Intro
1:26 What are HODL Waves?
3:22 Why do they exist? (UTXOs)
4:25 What do different waves mean?
5:11 How does this affect Price Action?
5:58 When to sell?
7:37 Who invented this?
8:05 How should investors use this?
8:48 History of all HODL Waves
10:02 Other similar metrics/topics

#HODLWaves #Bitcoin #Metrics