Bitcoin Diamond Hands: Despite Recent Fear, Coins Aged 12-18 Months Rise To 2-Year High
22 January 2022 - 6:00AM
NEWSBTC
Despite the recent fearful market, Bitcoin hodlers show diamond
hands as coins aged 12-18 months touch a 2-year high. Coins Matured
To 12-18 Months Revisit A High Not Seen Since 2 Years As pointed
out by an analyst in a CryptoQuant post, BTC hodlers have held
strong recently as coins aged 12-18 months have seen a sharp spike
recently. The relevant on-chain indicator here is the Bitcoin Sum
Coin Age (SCA) Distribution that 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 the age, these coins are
put into different categories. For instance, if a coin has been
sitting still since 12-18 months ago, it is included in the 12-18
months holder group. When the distribution of the long-term holders
goes up, it means accumulation has been strong recently. Such a
trend has usually been bullish for the price of Bitcoin as it shows
a large number of holders refuse to sell at the current levels. On
the other hand, when coins belonging to short-term holders move up,
it means some long-term holders have decided to sell. This trend
may be bearish for the price of the crypto. Related Reading
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Haven. But What Do The Locals Think? Now, here is a chart that
shows the trend in the supply of coins that have matured to 12-18
months (one of the long-term holder groups): Looks like the value
of the indicator has shot up recently | Source: CryptoQuant As you
can see in the above graph, the coins aged 12-18 months have
sharply rose recently, reaching a 2-year high. The highlighted
region in the chart is around when these holders bought these
coins. This means that these Bitcoin holders have now held strong
through multiple all-time highs, the mini-bear period between
May-July, as well as the recent fearful market. Related Reading
| Bitcoin Implied Volatility Plummets To Pre-Bull Market
Levels: What This Means Hodlers showing such diamond hands behavior
can prove to be quite bullish for the price of the coin in the long
term. Bitcoin Price Earlier today, Bitcoin’s price crashed below
$40k, touching as low as $38k. Since then, the coin hasn’t
recovered much yet. At the time of writing the crypto’s price
floats around $38.8k, down 7% in the last seven days. Over the past
month, the coin has lost 17% in value. The below chart shows the
trend in the price of BTC over the last five days. After weeks of
consolidation, BTC's 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
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