- The Bitcoin RHODL ratio examines the turn of capital turnover through cycle transitions.
- The methodology behind the ratio is (Single Cycle Long Term Holders) (6m-2y)/(1d-3m) to the youngest short term holders.HODL cap made waves
- While looking at the realized HODL ratio is a market indicator that uses a ratio of the HODL Waves cap made. In particular, the RHODL ratio takes the ratio between the 1-week and 1-2 year RCap HODL bands.
- In addition, it takes into account the increase in supply by weighting the ratio by the total age of the market. A high ratio indicates an overheated market and can be used to time cycle highs.
These two charts conclude that the bottom of the cycle seems to be from November 2022 during the collapse of the FTX. A case can be seen that the next bull run started as the ratio left the “green zone” – while this cycle has plenty of room to operate.
Post-cycle analysis, a next leg of the bull run started for Bitcoin appeared first on CryptoSlate.