Coins Matured To 12-18 Months Revisit A High Not Seen Since 2 Years
As pointed out by an analyst in a CryptoQuant , BTC hodlers have held strong recently as coins aged 12-18 months have seen a sharp spike recently. The relevant on-chain indicator here is the Bitcoin Sum Coin Age (SCA) Distribution that shows the distribution of coins among the different holders in the market.When the distribution of the long-term holders goes up, it means accumulation has been strong recently. Such a trend has usually been bullish for the price of Bitcoin as it shows a large number of holders refuse to sell at the current levels.
On the other hand, when coins belonging to short-term holders move up, it means some long-term holders have decided to sell. This trend may be bearish for the price of the crypto.
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Now, here is a chart that shows the trend in the supply of coins that have matured to 12-18 months (one of the long-term holder groups):Looks like the value of the indicator has shot up recently | Source:As you can see in the above graph, the coins aged 12-18 months have sharply rose recently, reaching a 2-year high. The highlighted region in the chart is around when these holders bought these coins. This means that these Bitcoin holders have now held strong through multiple all-time highs, the mini-bear period between May-July, as well as the recent fearful market.
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Hodlers showing such diamond hands behavior can prove to be quite bullish for the price of the coin in the long term.Bitcoin 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. Over the past month, the coin has lost 17% in value. The below chart shows the trend in the price of BTC over the last five days.After weeks of consolidation, BTC's price seems to have finally crashed below the $40k level | Source:
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com