Bitcoin's continued price movement has prompted intense analysis as it remains below the $100,000 mark. Despite reaching an all-time high above $108,000 last week, the cryptocurrency has struggled to maintain its upward momentum since then.
With this performance, BTC chain data is in the spotlight to reveal the factors driving the recent selling pressure and investor behavior. A key focus has been the Spent Output Age Bands (SOAB) index, which provides valuable insights into Bitcoin holders. Activity based on their retention periods.
Who Cashed Out Their Bitcoin Profits?
According to a CryptoQuant analyst known as Yonsei Dent, data It shows that Bitcoin investors who bought their holdings between six and twelve months ago have been the most active sellers during the recent price rally.
The group entered the market largely amid the initial excitement surrounding the launch of bitcoin exchange-traded funds (ETFs) earlier this year. While this selling activity put downward pressure on Bitcoin's price, the asset has managed to stabilize In the $90,000 to $100,000 range.
Interestingly, long-term holders, defined as those who hold Bitcoin for more than a year, have shown minimal selling activity. Historical trends suggest that these experienced investors are likely to anticipate high price levels before considering significant profits.
Meanwhile, Dent pointed to the Binary Coin Days Destroyed (CDD) metric, which shows that the significant decline in old Bitcoin in December has shifted from November. Historically, reduced activity from long-term holders during Price corrections It often indicates market resilience and the potential for future upside.
This analyst wrote:
The “Binary CDD” indicator at the bottom of the chart shows a decline in old Bitcoin sales in December compared to November. This suggests that many long-term holders may anticipate higher prices before selling.
Binance reserves represent market confidence
Speaking of higher prices, another important metric that points to significant Bitcoin movement comes from Binance's Bitcoin reserves, which have been steadily declining since August.
Darkfost, CryptoQuant Analyzer is highlighted that Binance reserves It recently hit its lowest level since January. This trend is notable because a similar drop earlier in the year preceded a 90% surge in Bitcoin's price.
A decrease in exchange reserves usually indicates that investors are moving their Bitcoin holdings away from centralized exchanges and into private wallets.
Such behavior indicates a reduction in selling pressure and a preference for long-term holding strategies. Historically, stock market declines have often coincided with periods of strong market optimism and rising prices.
Notably, as Bitcoin is currently still trading at $95,567, down 2.7% on the previous day, the confluence of these factors—long-term holder confidence, declining activity of older wallets, and dwindling exchange reserves—pictures It displays cautiously optimistic for you. Bitcoin Short path.
However, it is cautioned that sustained buying activity is needed to break psychological resistance levels and sustain the upward momentum.
Featured image created with DALL-E, chart from TradingView
