HODL Wave Analysis

HODL wave analysis is a technique that categorizes the supply of an asset based on how long it has been held without moving. This allows analysts to visualize the behavior of different cohorts of investors, from short-term speculators to long-term holders.

In crypto, HODL waves provide insights into the market cycle, as they show how wealth is transferred between these cohorts. During a bull market, long-term holders often sell to new participants, which is reflected in the HODL waves.

During a bear market, the supply becomes concentrated in the hands of long-term holders. Understanding these waves is essential for predicting market tops and bottoms.

It is a fundamental tool for long-term investors and market analysts. By observing how these waves evolve, one can better understand the maturity and stability of the market.

It is a powerful way to look beyond price and see the underlying structure of investor behavior.