Data from the Bitcoin Whales have shown that those who had Bitcoin gold during the June crash continue to be strong.
Bitcoin Sum Coin Age Distribution Shows Strong Accumulation Around $18k
An analyst pointed out in CryptoQuant that the $18k mark has received support from whales because they made spot purchases at the mark.
The relevant indicator here is the “Sum Coin Age Distribution,” which tells us about the amounts the different Bitcoin investor groups are holding in their wallets right now.
These groups are based on the idea of “coin age,” a measure of the total number of days a coin has been sitting dormant on the chain for.
As an example, if 1 BTC remains still in a single address for two weeks, then this coin is taken as a part of the “1 week to 1 month” (1W to 1M) supply.
Below is a chart that illustrates the trends in Sum Coin Age Distribution of Bitcoin Market over the past one year.
Source: CryptoQuant| Source: CryptoQuant
You can see that there has been an interesting trend in supply over the last several months, as you can see from the graph.
When the crypto’s price crashed back in June, the 1D to 1W supply spiked up as whales picked up some fresh coins around the $18k level.
Over time, the coins began to age in the 1W-1M range. This caused the 1D-1W band to plummet, while the 1W-1M group saw an increase.
Similar to previous coins, the maturity of these coins led to new groups, the 1M-to-3M, rising and the old one falling. The 3M-6M cohort is now at the conclusion of the cascading effect.
The recent increase in this last group suggests that the Bitcoin whales who bought during the crypto’s decline to $18k have still not realized profits on their coins, and have continued to hold onto them with conviction.
At the time of writing, Bitcoin’s price floats around $19.2k, up 1% in the last seven days. In the past month, crypto’s value has risen by 4%.
Below chart displays the trends in the value of the coin during the last five working days.
In the past few days, the value of crypto has shown a stagnant price movement. Source: TradingView.| Source: BTCUSD on TradingView
Featured image by Michael Blum at Unsplash.com. Also charts from TradingView.com. CryptoQuant.com.