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On-chain data shows dormant Bitcoin supply is once again heading to exchanges, something that could be bearish for the crypto’s price.
Bitcoin Exchange Inflow For Old Coins Has Been Observing Spikes In Recent Days
As noted by an analyst in a CryptoQuant afterSome coins in the age categories 2 to 3 years and from 3 to 5 years have recently been deposited on exchanges.
the “exchange intake” is an indicator that measures the total amount of Bitcoin being transferred to the wallets of all centralized exchanges.
When the value of this metric is high, it means that investors are depositing large sums of money into exchanges right now. Such a trend, if prolonged, could turn out to be bearish for the value of the crypto as it could be a sign of dumping by holders.
A modified version of this indicator is the exchange inflow”Issued age bands for output” (SOAB), who tells us about the individual contribution to the total influx of the different supply groups in the market.
These cohorts are categorized based on the time their coins have stood still. The relevant age groups here are “2y-3y” and “3y-5y”; the chart below shows the trend in the inflow of currency coming from these stocks:
Looks like the value of the metric for these cohorts has been raised in recent days | Source: CryptoQuant
As you can see in the chart above, Bitcoin exchange SOAB influx has been rising for these coin groups over the past few days or so.
This means that some investors have deposited significant amounts of 2 to 3 year and 3 to 5 year coins.
Such old stock is called the “long-term holder” supply. In general, the older the coins are, the less likely they are to move at any time.
So any movement of these coins, especially those to exchanges, can have noticeable effects on Bitcoin’s price.
At the moment of writing, The price of Bitcoin hovers around $19.1k, up 1% over the past seven days. Over the past month, the crypto has fallen 1% in value.
The chart below shows the trend in the price of the coin over the past five days.
The value of the crypto seems to have rebounded back from the dip a couple of days ago | Source: BTCUSD on TradingView
Bitcoin continued to show stale price movement over the past week as the crypto mostly hovered around the $19k level. About two days ago, BTC made an attempt to break the monotony by dropping to $18.7k, but it wasn’t long before the coin hit $19k again.
Featured image from Max Saeling on Unsplash.com, charts from TradingView.com, CryptoQuant.com