Data shows that Bitcoin’s bid more than a year ago has shown an accelerating movement lately, suggesting that the hands of the most powerful cryptocurrencies are feeling fear in the market.
Bitcoin Diamond Hands Are Starting To Retreat In The Existing Market
According to the latest weekly report from glassBTC’s older offering has been keeping an eye on the selloff in recent days.
The relevant indicator here is the “revolving supply from more than an active year,” which measures the number of coins that have been flat for at least a year experiencing daily movement.
When the value of this metric goes up, it means that at the moment a large amount of coins belonging to the bitcoin providers are being transferred.
Such a trend, when extended for a long time, could be bearish for the price of the cryptocurrency because this type of movement could indicate that the diamond hands in the market are sold out.
On the other hand, lower scale values indicate that there has been no significant movement in the older than 1 year supply recently.
Related reading | Long-Term Bitcoin Holder Loss Now Highest Since 2019
This trend shows that dealers are holding on tight to their coins, which is a signal that can be either neutral or bullish for the value of the coin.
Now, here’s a chart showing the trend in the Bitcoin supply that was last revived over a year ago over the past 12 months:
The value of the indicator seems to have been high recently | Source: Glassnode's The Week Onchain - Week 25, 2022
As you can see in the chart above, a large amount of coins that have been active for over a year have shown movement in recent days.
Not only that, the spending of the old coins has been somewhat accelerating, now reaching a value of 20,000 to 36,000 BTC per day.
This means that these long-term owners have ramped up their sales in the past few days as the cryptocurrency price has struggled.
The trend indicates that the latter Collide It has put fear and panic among the strongest hands of Bitcoin, who are usually the last to budge during the selloff.
If coins older than one year continue to sell off, BTC may notice more downside in the near future.
At the time of writing this report, Bitcoin price It is floating around $21,000, down 5% in the past seven days. Over the past month, the cryptocurrency has lost 28% of its value.
The chart below shows the currency price trend over the past five days.
Looks like the value of the crypto has been steadily rising over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com