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Data on the chain suggests that Bitcoin whales that gathered during the June crash have remained strong so far.
Bitcoin Sum Coin Age Distribution Shows Strong Accumulation Around $18k
As noted by an analyst in a CryptoQuant afterthe $18k level has received support from the whales because they made purchases on the spot.
The relevant indicator here is the “Sum coin age distribution”, which tells us about the amounts that the various Bitcoin investor groups currently have in their wallets.
These groups are based on the idea of ’coin age’, a measure of the total number of days a coin has been lying dormant on the chain.
For example, if 1 BTC remains in one address for two weeks, this coin will be taken as part of the “1 week to 1 month” (1W to 1M) supply.
Here is a chart showing the trend in the Sum Coin Age Distribution in the Bitcoin market over the past year:
Looks like the 3M to 6M group has been going up in recent weeks | Source: CryptoQuant
As you can see in the chart above, the amount of supply from the different age cohorts of Bitcoin coins has shown an interesting pattern in recent months.
When the price of the crypto crashed in June, the supply rose from 1D to 1W as whales picked up some new coins around the $18k level.
As the days went by, these coins started to age in the 1W to 1M range, causing the 1D to 1W band to plummet while the 1W to 1M group observed an uptrend.
Likewise, these coins matured further over time leading to the 1M rising up to 3M group and the previous one falling off. And finally, in the last few months, the 3M-6M cohort has also come to the end of this cascade effect.
The recent increase in the latter group suggests that the Bitcoin whales that bought during the crypto’s decline to $18k have still failed to realize a profit on their coins and have continued to hold them with conviction.
At the moment of writing, The price of Bitcoin hovers around $19.2k, up 1% over the past seven days. In the past month, the crypto has gained 4% in value.
The chart below shows the trend in the price of the coin over the past five days.
The value of the crypto continues to show stagnant price movement in the last few days | Source: BTCUSD on TradingView
Featured image from Michael Blum on Unsplash.com, charts from TradingView.com, CryptoQuant.com