The data shows that the 1-year-old supply of bitcoins has been showing an acceleration of movement lately, suggesting that even the stronger hands of the cryptocurrency are feeling fear in the market.
Bitcoin diamond hands are starting to budge in the current market
According to the latest weekly report glass knotin recent days, sales of old BTC stocks have been observed.
The relevant indicator here is “Last Active 1+ Year Reopened Supply”, which measures how many coins that were dormant at least a year ago show movement per day.
When the value of this indicator rises sharply, it means that a large number of coins belonging to bitcoin holders are currently moving.
Such a trend, if it continues for a certain period of time, can be bearish for the price of the cryptocurrency, since such a movement could mean that the diamond hands in the market are selling.
On the other hand, low values of the metric mean that there has not been any significant change in supply over one year recently.
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This trend shows that hodlers have a strong hold on their coins, which can be either neutral or optimistic for the value of the coin.
Now here is a chart showing the Bitcoin supply resurgence trend, which was last active 1+ year ago for the last 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 number of coins that were active over a year ago have moved in recent days.
Also, not only that, these spending of old coins is quite accelerating, now reaching a value of 20 to 36 thousand BTC per day.
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This means that these long-term holders have been ramping up their sales in the past few days as the price of the cryptocurrency fluctuated.
The trend suggests that the recent crash has caused fear and panic even in the strongest bitcoin hands, which are usually the last ones to budge during sell-offs.
If the sale of coins older than one year continues, then BTC may see a further downtrend in the near future.
At the time of writing, the price of Bitcoin is hovering around $21k, down 5% over the past seven days. Over the past month, the cryptocurrency has lost 28% in price.
The chart below shows the price dynamics of the coin 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
Credit : www.newsbtc.com