Bitcoin hodlers have diamond hands despite the market turmoil. Bitcoins between 12-18 month old touch a 2-year peak.
The Highest Not Seen since 2 Years is Revised by Coins That Have Been Matured For 12-18 Months
An analyst pointed out in CryptoQuant that BTC hodlers are holding strong as coins older than 12-18 months saw a sharp rise recently.
This on-chain indicator is called the Bitcoin Sum Coin Age Distribution (SCA). It shows how coins are distributed among different market holders.
You can use the metric to look at each coin and measure how long it’s been since its last move. The age of the coins determines which category they belong to.
If a coin is still in its original position 12-18months ago, then it will be included in the 12–18 month holder group.
It is a sign that there has been a lot of accumulation recently, if the distribution of long-term holders rises. This trend is usually bullish for Bitcoin’s price, as it indicates that a lot of Bitcoin holders are unwilling to sell at current levels.
Conversely, coins that belong to short-term holders tend to move up. This means long-term holders may have decided to sell. This could have a negative impact on the cryptocurrency’s value.
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This chart shows how the coins have been minted over the past 12-18 month (one of long-term holder groups).
It looks like the indicator's value has increased recently. Source: CryptoQuant| Source: CryptoQuant
You can see that the prices of coins older than 12-18 months are on the rise, and have reached a two-year peak. You can see the highlighted area in this chart where these holders purchased these coins.
This is a sign that Bitcoin holders are now strong despite multiple highs.
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Such behavior by Hodlers with diamond hands can be very bullish on the currency’s long-term price.
Earlier today, Bitcoin’s price crashed below $40k, touching as low as $38k. Since then, the coin hasn’t recovered much yet.
At the time of writing the crypto’s price floats around $38.8k, down 7% in the last seven days. In the past month, it has experienced a 17% drop in its value.
The chart below shows how Bitcoin’s prices have changed over the course of the last five business days.
BTC seems to have fallen below $40k after weeks of consolidation. Source: BTCUSD tradingView| Source: BTCUSD on TradingView
Unsplash.com's featured image. Charts by TradingView.com. CryptoQuant.com chart.