Despite recent fears, coins soar from 12-18 months to 2 years high
Despite the recent market scare, Bitcoin hodlers are showing diamond hands as 12-18 month coins hit a 2-year high.
Coins aged to 12-18 months Revisit a highlight not seen in 2 years
As noted by an analyst in a CryptoQuant after, BTC hodlers have been holding strong lately as 12-18 month coins have seen a sharp spike recently.
The relevant on-chain indicator here is the Bitcoin Sum Coin Age (SCA) Distribution which shows the distribution of coins among the different holders in the market.
The metric works by looking at each coin on the chain and measuring how many days it has been since it was last moved. Based on age, these coins are classified into different categories.
For example, if a coin has been standing still 12-18 months ago, it will be included in the 12-18 month holding group.
When the distribution of the long-term holders goes up, it means that the accumulation has been strong lately. Such a trend has been mostly bullish for Bitcoin’s price as it shows a large number of holders refusing to sell at the current level.
On the other hand, when coins of short-term holders are rising, it means that some long-term holders have decided to sell. This trend could be bearish for the price of the crypto.
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Here’s a chart showing the trend in the supply of coins matured to 12-18 months (one of the long-term holder groups):
It seems that the value of the indicator has recently increased | Source: CryptoQuant
As you can see in the chart above, the 12-18 month coins have risen sharply lately, reaching a 2 year high. The highlighted area in the chart is round when these holders bought these coins.
This means that these Bitcoin holders have now held up strong through multiple all-time highs, the mini-bear period between May-July, as well as the recent market apprehension.
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Hodlers exhibiting such diamond-handed behavior could prove quite bullish for the coin’s price in the long run.
Earlier today, Bitcoin price crashed below USD 40k and reached a low of USD 38k. Since then, the currency has not recovered much.
At the time of writing, the price of the crypto is hovering around $38.8k, down 7% over the past seven days. The currency has fallen 17% in value over the past month.
The chart below shows the trend in the price of BTC over the past five days.
After weeks of consolidation, BTC price seems to have finally crashed below the $40k level | Source: BTCUSD on TradingView
Featured image from Unsplash.com, Charts from TradingView.com, CryptoQuant.com