Data shows the Bitcoin supply older than 1 year has shown accelerating movement recently, suggesting even the crypto’s stronger hands are feeling the fear in the market.
Bitcoin Diamond Hands are Starting to Budge in Current Market
According to the latest weekly report from Glassnode, BTC’s older supply has been observing selling in recent days.
The relevant indicator here is the “revived supply last active 1+ years,” which measures how many coins that have been sitting still since at least one year ago are seeing movement per day.
This metric is worth a lot more than it seems, so if the price of Bitcoin spikes up, that means lots of Bitcoin hodlers coins are being moved right now.
Such a trend, when prolonged over a period, may be bearish for the crypto’s price as this kind of movement can imply the diamond hands in the market have been selling.
On the other hand, low values of the metric imply there hasn’t been any significant movement in the supply older than one year recently.
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This trend shows hodlers are holding strong on to their coins, a sign that could be either neutral or bullish for the coin’s value.
Here’s a chart showing the trends in Bitcoin supply revival over the last 12 months.
The indicator appears to have a high value recently. Source: Glassnode's The Week Onchain Week 25, 20,22| Source: Glassnode's The Week Onchain - Week 25, 2022
You can see that the graph shows movement of recent days for a lot of coins which were active longer than one year ago.
This is not all. Old coins are being spent at a rapid pace, with a daily value of around 20k-36k BTC.
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As the crypto price is struggling, this means that long-term investors have been selling more in recent days.
According to the trend, even Bitcoin’s most powerful users are fearful and anxious.
BTC may experience a further decline if the sale of older coins continues.
BTC Prices
At the time of writing, Bitcoin’s price floats around $21k, down 5% in the last seven days. The crypto’s value has dropped 28% over the last month.
Below is a chart showing the change in coin price over the past five days.
It seems like crypto's value has been rising steadily over the past few days. Source: TradingView, BTCUSD.| Source: BTCUSD on TradingView
Unsplash.com featured image, Charts from TradingView.com and Glassnode.com charts