The Bitcoin RHODL Ratio and Its Significance for the Next Bull Run
Analyst James V. Straten has pointed out that the BTC RHODL ratio could provide insights into when the next bull run for Bitcoin might occur. The RHODL ratio measures the value held by long-term holders (LTHs) who have held their investments for 6 months to 3 years, compared to the value held by short-term holders (STHs) who have held their investments for 1 day to 3 months.
By analyzing this ratio, it is possible to observe how capital rotation happens in the market. The trend of the RHODL ratio has shown a consistent pattern in each Bitcoin cycle, hitting a bottom during bull run tops and then increasing as LTHs accumulate more at lower prices. The ratio usually reaches its peak during cyclical bottoms in price.
Current Trend and Potential Bull Run
Recently, the RHODL ratio has been declining, similar to past bull market buildups. However, there is often a dead cat bounce before the decline resumes. The indicator has now started to turn upwards again, suggesting that this dead cat bounce pattern may be forming once more.
Historically, true bull markets have followed when the Bitcoin RHODL ratio reverses its direction after this pattern and continues its downtrend. Therefore, it is important to watch for a similar reversal this time, as it could indicate the start of the next bull run.
BTC Price
Bitcoin’s price has remained relatively stable around $26,600 following a recent drop. Here is a chart showing the current BTC price:
Hot Take: RHODL Ratio Reversal Needed for Bitcoin Bull Run
The Bitcoin bull run may not start properly until this on-chain ratio reverses the trajectory it is currently going in. The RHODL ratio, which compares the value held by long-term holders (LTHs) and short-term holders (STHs), has shown a consistent pattern in previous Bitcoin cycles. The recent decline in the ratio, along with the potential dead cat bounce pattern, suggests that a reversal may be on the horizon. Historically, true bull markets have followed when the RHODL ratio resumes its downtrend after this pattern. Therefore, keeping an eye on this indicator could provide insights into the timing of the next bull run.
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