Bitcoin “Diamond Hands” Start To Break As 1yr+ Supply Ramps Up Selling
Data shows the Bitcoin supply older than 1 year has shown accelerating movement recently, suggesting even the crypto’s stronger hands are feeling the fear in the market.
Bitcoin Diamond Hands Are Starting To Budge In Current Market
According to the latest weekly report from Glassnode, BTC’s older supply has been observing selling in recent days.
The relevant indicator here is the “revived supply last active 1+ years,” which measures how many coins that have been sitting still since at least one year ago are seeing movement per day.
When the value of this metric spikes up, it means a large amount of coins belonging to Bitcoin hodlers are being moved at the moment.
Such a trend, when prolonged over a period, may be bearish for the crypto’s price as this kind of movement can imply the diamond hands in the market have been selling.
On the other hand, low values of the metric imply there hasn’t been any significant movement in the supply older than one year recently.
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This trend shows hodlers are holding strong on to their coins, a sign that could be either neutral or bullish for the coin’s value.
Now, here is a chart that shows the trend in the revived Bitcoin supply last active 1+ 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 above graph, a large amount of coins last active more than a year ago showed movement in recent days.
Also, not just that, this spending of old coins has been rather accelerating, now reaching a value of 20k to 36k BTC per day.
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This implies that these long-term holders have been ramping up their selling in the last few days as the price of the crypto has struggled.
The trend suggests that the recent crash has put fear and panic among even the stronger of Bitcoin hands, who are usually the last to budge during selloffs.
If the selling of coins older than one year continues on, then BTC could observe further downtrend in the near future.
At the time of writing, Bitcoin’s price floats around $21k, down 5% in the last seven days. Over the past month, the crypto has lost 28% in value.
The below chart shows the trend in the price of the coin over the last 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