Similarly to its classic cousin Realized Cap HODL Waves chart shows how Bitcoin supply is distribution across
various coin age bands represented by waves of different color.
The key difference between the two charts is that the Realized Cap version shows how much each age band contributes to the market-wide Realized Cap.
Realized Cap is a measure of combined USD values of all coins in a set at those points when they were transferred (roughly, purchased) to a new owner from a previous one. It can be thought of as a collective cost basis for all the owners of coins in the set.
Disproportionally big waves in the lower age bands indicate an increased amount of new coins purchased (received) at much higher prices then the rest of the coin population.
A good way to look at this chart is as a FOMO indicator. Distribute your position into the tops of these young FOMO wave peaks.
Conversely buying in the periods of higher age bands dominance (majority of coin owners are holding for a long time and aren't likely to sell) is usually a smart idea.
The key difference between the two charts is that the Realized Cap version shows how much each age band contributes to the market-wide Realized Cap.
Realized Cap is a measure of combined USD values of all coins in a set at those points when they were transferred (roughly, purchased) to a new owner from a previous one. It can be thought of as a collective cost basis for all the owners of coins in the set.
Disproportionally big waves in the lower age bands indicate an increased amount of new coins purchased (received) at much higher prices then the rest of the coin population.
A good way to look at this chart is as a FOMO indicator. Distribute your position into the tops of these young FOMO wave peaks.
Conversely buying in the periods of higher age bands dominance (majority of coin owners are holding for a long time and aren't likely to sell) is usually a smart idea.