The on-chain data indicates that the Bitcoin whales, who purchased around a month ago, have held strong in spite of the recent price rise providing them with an opportunity to make some profits.
Recently, Bitcoin Supply 1 Month to 3 Months Old has been rising
A CryptoQuant analyst points out that whales bought for $19k a month ago may not have realized the profits.
This indicator is the Bitcoin supply age band, which shows how many coins each cohort has at any given moment.
These age groups are divided according to how long the coins have been stored stationary in one wallet address.
For example, the 1D-1W age band includes all coins that haven’t been moved or sold since between one day and one week ago.
Here’s a chart showing the trends in Bitcoin supply for certain age groups over the last week.
Source: CryptoQuant| Source: CryptoQuant
You can see that 1D-1W Bitcoin supply is increasing in recent days. That suggests some market growth.
However, the less than 1-D age group saw some increase as the price spike started but has been falling in recent days.
This group has one important significance. It reflects new buying in the market. This means that there are no new sales as the trend has slowed down.
According to the quant in this post, a lackluster buying trend could indicate that the price rise is likely to end soon.
However, the Bitcoin market is showing positive signs. The 1M-3M-age group has seen an increase in recent months.
It is possible that the maturation into this group of coins has just happened, suggesting that whales may have bought this supply around a month before.
The price at that point was $19k. This means that the whales can now sell for a profit. However, the 1M-3M increase in supply has shown that investors are still confident there will be other profitable opportunities.
At the time of writing, Bitcoin’s price floats around $20.7k, up 8% in the last week.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Image by Jaunathan Gagnon, TradingView.com charts, CryptoQuant.com