On-chain data shows a significant amount of old Bitcoin supply has flowed into Binance today, something that could be bearish for the crypto’s price. Bitcoin Supply 1-6 Months Old Has Been Deposited To Binance As pointed out by an analyst in a CryptoQuant post , this aged supply is likely to be in profits and hence the deposits could have been done to sell it. The relevant indicator here is the “ Spent Output Age Bands ” (SOAB), which measures the total amount of Bitcoin that each age band in the market is moving currently.
Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now. The “age bands” here refer to coin groups divided based on the age of the coins belonging to them. For example, the 6m-12m age band includes the total number of coins that have been sitting dormant on the blockchain since at least 6 months and at most 12 months ago.
The SOAB metric for this age band would then tell us how many of these coins from this age band are being transferred right now. A modified version of this indicator is the “exchange inflow SOAB,” which only tracks transactions that are going toward exchanges. Investors usually deposit to these platforms for selling purposes, so large values of this metric can have a bearish impact on the price.
Related Reading: Bitcoin And Crypto This Week: Here’s What Will Be Important In the context of the current discussion, the 1m-3m and the 3m-6m age bands are the relevant cohorts. Here is a chart that shows the trend in the SOAB data for these two age bands over the past day: BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild. io.
Play Now! The value of the metric seems to have been pretty high today| Source: CryptoQuant As displayed in the above graph, the Bitcoin exchange inflow SOAB has observed large spikes for the 1m-3m and the 3m-6m age bands during the past day. The metric used here is specifically for the crypto exchange Binance , which suggests that a large number of coins falling into these groups have been deposited to this platform. While supply belonging in the 1m-6m old range isn’t that aged (certainly not when compared to coins older than 1 or 2 years), selling from investors falling in this cohort can still have significant implications on the market.
Related Reading: Data Shows 50% Of Bitcoin Hashrate Controlled By Two Mining Pools The BTC price has been between the $15,000-$25,000 range for the time period squeezed between 1 and 6 months ago, which implies that investors who would have bought inside this span are likely to be in profits at the moment. This may suggest that these investors who have deposited to Binance are trying to strike while the iron is still hot and claim the profits that they have amassed recently. The quant notes that these holders might be planning to sell ahead of the upcoming FOMC meeting .
BTC Price At the time of writing, Bitcoin is trading around $23,300, up 2% in the last week. Looks like the value of the crypto hasn't moved much in the last few days | Source: BTCUSD on TradingView Featured image from Dmitry Demidko on Unsplash. com, charts from TradingView.
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Leave this field empty if you're human: Hououin Kyouma Loves to write, enthusiastic about cryptocurrency. Currently studying Physics at university. Related Posts Bitcoin And Crypto This Week: Here’s What Will Be Important 5 hours ago Bitcoin Price Nears $24,000 Mark – Can Bulls Push BTC To $25K This February? 9 hours ago Data Shows 50% Of Bitcoin Hashrate Controlled By Two Mining Pools 1 day ago Institutional Bitcoin Buying Is A Positive Sign, Suggests Matrixport 2 days ago Inflation May Be In A Lull, What Does That Mean For Bitcoin? 3 days ago Major Adoption News For Bitcoin: POS Giant Clover Starts Lightning Trial 3 days ago.
