Bitcoin RHODL Ratio

[yonkii 3205]

This is something I found recently and it gave me a very good idea about the Bitcoin price and how to identify where the top price of Bitcoin may be according to Bitcoin cycles. It is called RHODL ratio, meaning Realized HODL Ratio. 

 

It is a macro indicator that combines two values:

• MVRV (Market Value to Realized Value ratio)

Spoiler

Market Value: Also known as market capitalization, to calculate it you would multiply current BTCUSD trading price by the number of bitcoins mined thus far. Very much like Market Cap in traditional markets where one multiplies the share price by number of shares for a given company.

Realized Value: Instead of counting all of the mined coins at equal current price, the UTXOs are aggregated and assigned a price based on the BTCUSD market price at the time when said UTXOs last moved from one wallet to another wallet. It can be thought of as the cost basis for coins currently held.

• HODL Waves

Spoiler

HODL Waves: Groups UTXO’s by age since they were last moved. When these different groups by age are charted, they look like waves. Hence the term HODL waves.

*UTXO means unspent transaction output, it is what is remains after making a Bitcoin transaction.

 

These are two different indicators that examine two different indicators that scientifically are describing the market cycles. When combined under the equation.

Quote

we get this chart:

 

This is a logarithmic chart and using this chart it is possible to find the peak of Bitcoin price with some accuracy, as when RHODL gets inside the red area price of Bitcoin is overheated. Also, the best price to buy would be at the light blue zone, when the price of Bitcoin has bottomed. The red zone starts when RHODL has a value of 50,000. The chart is interactive and you can find it on the website "lookintobitcoin".

 

Looking at the RHODL ratio today, it seems we are just halfway from the top according to historic price movements. The red area is still far and the end of this Bitcoin cycle has some more to go, perhaps six months or another year, so taking profits could wait for a while. The creator of this indicator Philip Swift claims that it is accurate and has not given a false signal historically. Reading the chart I can agree and if we are to trust this chart prediction, the price is still low to sell.

 

Chart from:

https://www.lookintobitcoin.com/charts/rhodl-ratio/

Edited January 13, 2021 by yonkii

[Fixfin 2569]

I will have to read some more about this rhodl ratio, maybe there is something here and I have read about the hodl waves in the past, yet this is something that we see being repeated, having seen Bitcoin being removed massively from exchanges and sell orders being very thinner from previous months, or years.

[cryptovlek 2597]

So, according to this chart, it is possible that Bitcoin will become "overheated" after it passes probably $100,000, maybe the creator should raise the red zone a little to the upside so that it covers this price as well. Looking now the 100,000 mark should be right where the red zone ends, but this is for the blue line which is price. Thanks for giving this website, maybe this indicator could help us decide when it is a good time to sell.

[yonkii 3205]

On 1/14/2021 at 9:39 PM, Emanuel 12 said:

This is very good information. Reading chats like this can help you increase your chances of making better profits in the crypto world. It's really good to see such information on the forum.

Thank you friend. I found this during my research on Bitcoin and I wanted to let the forum know about the RHODL ratio. It is an indicator that I couldn't ignore and I hope that the forum, members and moderators will find it to be useful addition. In all my last new posts I given time to do search in the forum and found there wasn't a post about these, so I hope I made the right thing in posting them.

[Syedbesharat 5423]

Their are many experts who claims their charts are not gonna be wrong but didn't find any of analysist chart become reality where their articles and predictions were reported. But it's good for study and learn more about BTC. The theory and ideology about BTC movent gives a good idea about BTC moves but it's still far from become potential chart fir BTC future movement. As a trader fund more information and dip up the upcoming surrgence is the BTC is ultimate moto. 

[percare 3192]

Interesting, it needs a lot of attention and time, and perhaps it means that Bitcoin is now just in the middle of a bull run. We are going to have to wait for a whole year and see if this is going to be correct or not.

[abohasnn9 2401]

I did not know my friend that the bitcoin commission rate is called rhodl, and this indicates that the price of Bitcoin and its whole rate is highly regulated, and the bitcoin commission rate is relatively high due to the high price of Bitcoin in the markets, which imposes a commission from the workers of the charity and the mediator between us and they are interested in Bitcoin is a blockchain company. Thank you very much

[Cleaner 2549]

I monitor the Bitcoin market every day.  It is always restless.  The red signal is the indicator of the decrease in the price of Bitcoin and the green signal is the indicator of the increase in the price of Bitcoin.  If we look at the previous ratio of Bitcoin, we can understand how much Bitcoin has moved the market.  However, some experts predict its price and their predictions are correct.  However, the price of Bitcoin will increase further in the future