These Two On-Chain Signals Precede Bitcoin Falls, Suggests Analyst

One analyst suggested that two on-chain signals could be used to predict a Bitcoin decline as they appear to have historically preceded declines in the cryptocurrency’s price.

Bitcoin sales for 7-year to 10-year old coins have skyrocketed recently

As pointed out by an analyst at CryptoQuant MailBTC dumping of 7-10 year old coins and rising ETH dominance can be two signs to look out for before a coin depreciates.

The first relevant pointer here is “Expired output life rangeswhich checks the movement of coins on the chain and tells us which age groups are responsible.

Various “coin age groups” in the market include coins based on the total amount of time they were sitting idle before being transferred or sold.

The group in question here is the “7-10 year old” group. Therefore, the Spent Output graph for this group shows the number of coins moved that were previously idle for periods in this range. Here is the graph for it:

Sell ​​long term bitcoin holder

The value of the metric seems to have spiked up in recent days | Source: CryptoQuant

As you can see in the chart, Quantum has identified the relevant trend points for this Bitcoin indicator as well as the corresponding BTC price.

The analyst explains that whenever the spending of the 7- to 10-year age range exceeds 5000, BTC usually notices a downward trend in its value.

Of the 7 times the signal was seen over the past few years, only once did the price drop.

Ethereum dominance has also skyrocketed in recent weeks

Another indicator that the analyst thinks is noteworthy is “ETH . dominationIt is a measure of the total market capitalization share of cryptocurrencies in Ethereum.

The chart below shows the trend in this metric over the past few years.

Ethereum Dominance vs Bitcoin

Looks like the value of the metric has been high recently | Source: CryptoQuant

It appears that Ethereum’s dominance over the 20% mark has also been a bearish sign for Bitcoin during this period.

In conclusion, the analyst suggests that the correct use of these two indicators in conjunction may help investors prepare for downward trends in the future.

At the time of writing this report, Bitcoin price It is floating around $18.7K, down 16% in the past seven days. Over the past month, the cryptocurrency has lost 18% of its value.

The chart below shows the currency price trend over the past five days.

Bitcoin price chart

BTC's value has plunged down over the last day | Source: BTCUSD on TradingView
Featured image from Bastian Riccardi on, charts from,

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