Who Profited During Bitcoin’s $100,000 Surge? Analyst Breaks Down the Data
Bitcoin continues to hover below the $100,000 mark, with the ongoing price action sparking intense analysis. Despite hitting an all-time high above $108,000 last week, the cryptocurrency has struggled to maintain its upward momentum since then.
With this performance, Bitcoin’s on-chain data comes into focus to shed light on the factors driving recent selling pressure and investor behavior. A key focus is the Spend Output Age Band (SOAB) metric, which provides valuable insights to Bitcoin holders. Holding Period Based Activities.
Who Cashed Out Bitcoin Gains?
According to CryptoQuant analyst Yonsei Dent, data It has been revealed that investors who bought Bitcoin six to twelve months ago were the most active sellers during the recent price surge.
This group largely entered the market during the initial excitement surrounding the launch of a physical Bitcoin exchange-traded fund (ETF) earlier this year. Although this selling activity has put downward pressure on Bitcoin’s price, the asset has managed to stabilize In the range of US$90,000 to US$100,000.
Interestingly, there has been very little selling activity from long-term holders (defined as those who have held Bitcoin for more than a year). Historical trends suggest that these sophisticated investors may anticipate rising price levels before considering significant profit-taking.
Meanwhile, Dent noted that the coin days to destruction (CDD) metric showed a significant drop in old Bitcoin being transferred in December compared to November. Historically, long-term holders have seen reduced activity price correction Typically signals market resilience and the potential for future upward momentum.
The analyst wrote:
The Binary CDD indicator at the bottom of the chart shows that sales of old Bitcoin declined in December compared to November. This suggests that many long-term holders may have expected higher prices before selling.
Binance Reserve Shows Market Confidence
Speaking of rising prices, another key indicator that Bitcoin is brewing a major move comes from Binance’s Bitcoin reserves, which have been steadily declining since August.
CryptoQuant Analyst Darkfost Highlight That Binance’s Reserve It recently hit its lowest level since January. This trend is significant because Bitcoin’s 90% price surge earlier this year was preceded by a similar decline.
A decrease in foreign exchange reserves usually indicates that investors are moving their Bitcoin holdings away from centralized exchanges and into private wallets.
This behavior indicates reduced selling pressure and a preference for long-term holding strategies. Historically, declines in exchange reserves have tended to coincide with periods of strong market optimism and rising prices.
It is worth noting that as BTC is still trading at $95,567, down 2.7% from the past day, the combined effect of factors such as long-term holder confidence, reduced activity in old wallets, and declining foreign exchange reserves has shown cautious optimism for Bitcoin. prospects. Bitcoin’s recent trajectory.
However, it is important to note that sustained buying activity is needed to break through psychological resistance levels and maintain upward momentum.
Featured image created using DALL-E, chart from TradingView
