Balance by Time Held
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In the same way that IntoThBlock classifies the number of addresses by their holding period, this indicator takes it a step further by adding the value that each specific group has represented over time. The indicator shows the value of coins relative to each individual group (Hodlers, Cruisers and Traders) since its historic inception. This helps to keep track of the trading behaviors of each different group.
Hodlers tend to decrease their holdings late into bull cycles (black arrows) while Traders rush in to buy (purple circles). This occurred through the double bubble in 2013, as well as in late 2017 and in 2021. Then, a few months after Hodlers begin to increase their balance again, we tend to see the beginning of a new bull cycle.
As the saying goes, “history doesn’t repeat itself, but it often rhymes”. Here we can see how that has been the case for Bitcoin and how taking a look at these long-term shifts in ownership can be helpful when attempting to time the market.
