Here’s what the on-chain data says regarding which segment of the Bitcoin market was involved in selling at the most recent high prices.
Bitcoin investors have been showing 90+ days of activity recently
As the YouTuber pointed out in the X mailHowever, there is still only one sector of the Bitcoin market involved in profit-taking. The data shared by the user is from the on-chain analytics company Santiment. More specifically, the chart is for the Passive Trading Indicator.
Dormant trading tracks the total number of tokens that are transferred on the blockchain after they have been dormant for at least a certain period of time.
Below is a chart of the measure, which shows the trend in its value for three different time frames over the past few months:
The value of the metric appears to have been high for the 90+ days cohort in recent days | Source: @denomeme on X
In the chart, the three passive trading versions listed are: 90 days, 365 days, 3 years. Note that these are the starting points for the periods the measure tracks; For example, the 90-day index measures currency transactions that were held for more than 90 days before the transfer.
From the chart, it is clear that passive trading rose to notable levels for over 90 days and over 365 days coins as the cryptocurrency rally occurred last month.
At some point, the difference between the highs of the two was not significant, so the bulk of the transactions accounted for by the more than 90-day issue were actually coins older than 365 days. Thus, it appears that the veteran group in the Bitcoin market, called long-term holders (LTHs), have been busy selling.
90-day passive trading remained at notable levels this month as the asset’s bullish momentum continued with its price exploring above the $100,000 level.
However, unlike last month, the 365-day version of the indicator did not register any gains, implying that it is the currencies between 90 days and 365 days that are being sold. Half of this range is made up of older holders of short-term stocks (STHs) and the other half is made up of younger holders of LTHs.
Given that the broader LTH group was not involved in any sale, it is likely that the majority of transactions are actually coins owned by STH.
Based on the trend we saw last month, it appears that some HODL members were rushing to take their profits earlier, but now the group believes that Bitcoin still has the potential to surpass the recent highs, so its members are reluctant to sell.
STHs are known to represent the volatile side of the market that sells off easily, so it is no surprise that they are still making profits amidst the $100,000-plus hype.
Bitcoin price
At the time of writing, Bitcoin is trading at around $104,200, up more than 6% over the past week.
Looks like the price of the coin has been on the way up over the last few days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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