Bitcoin on chain analysis: old addresses not profitable despite new ATH

Bitcoin Magazine will look at on-chain metrics related to the lifespan of BTC, more specifically the Average Spent Lifespan (ASOL) and liveliness. This is done to determine if any older coins are being sold or held for a profit during this bull run.

Aliveness is used to determine if old coins are in use. The index ranges from 0 to 1. It is generated by dividing the total number of coin days destroyed by the total of all coins created. A higher value means older coins are moving, while a lower value means they are inactive.

This indicator usually hits a high at the top of a bull cycle.

Average Spent Output Lifespan (ASOL) is a metric used to measure the average age of each transaction. A high index means that the currently traded coins have not been moved for a long time.

Bitcoin liveliness indicator

The vibrancy hit an all-time high of 0.622 (black circle) on August 5th. It does so during the rebound from July lows near $ 30,000.

At the time, the movement looked like a bearish sign as it meant old coins were being sold for a profit. This usually happens during relief rallies or market highs.

However, the liveliness has decreased since then and is currently at 0.6175. This is a bullish sign as it shows that older coins have not moved despite the fact that BTC has hit new all-time highs recently. This favors the continuation of the bull cycle.

Bitcoin liveliness chart | The source: Glass knot

Average service life (ASOL)

The ASOL hit an initial high of 84.3 on January 13th. This means that for every transaction, BTC has not moved on average for the past 84.3 days.

The high was hit on the first drop after BTC hit the ATH at $ 40,771. This was the result of profit-taking, but ASOL gave way afterwards.

Likewise, ASOL rose significantly on August 22nd, hitting a high of 110. It did so after the price of BTC rose from $ 30,000 to $ 49,000. At the time, this indicated that the upward move was a rally, but the ASOL has fallen sharply since then.

Thus, both Vibrancy and ASOL suggest that there was some profit taking during Bitcoin’s initial rebound to $ 50,000, but they have fallen in the current uptrend and older coins are not currently working.

Bitcoin ASOL Chart | The source: Glass knot

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