Categories: Market

Bitcoin On Chain Analysis: Who Is Currently Selling BTC?

Bitcoin Magazine will be looking at Bitcoin’s On-Chain Index (BTC), more specifically the HODL wave, to determine the age of the coins currently moving.

HODL Wave BTC

The HODL Wave indicator shows the percentage of BTC that have changed hands in a given period of time. Warm colors (red, orange, yellow) represent BTCs that have recently changed hands, while cold colors (yellow, green, blue) mean that BTC has not been traded for a while.

For example, if a 3-6 month HODL wave is on the order of 20%, it means that 20% of the total BTC supply has shifted 3 to 6 months earlier.

When looking at the indicator, the first thing you notice is the increase in the 6-12 month band (blue circle). This happens due to a decrease in bands smaller than 6 months while those larger than 12 months remain the same.

Bands less than 6 months old have been in decline since June. This means that BTC was bought about six months before June, has yet to move, instead it has matured into the larger six month band, allowing the 6-12 month band to be increased.

on-chain-btcon-chain-btc

The source: Glass knot

Short term tapes

As mentioned above, the 3-6 month band has been falling since June. At that time it had a peak value of 15%, currently it is 7%.

In June, the pool includes people who purchased BTC between December 2020 and February 2021 (vertical black lines). With these BTC now maturing to the 6-12 month band, it means those who bought during this time will not sell but will continue to hold.

The source: Glass knot

Interestingly, there has been an increase in the 1-week – 3-month bands since October, which can also be attributed to a decrease in the 3-6-month band.

That means people who bought between April and July 2021 are now selling. Since the 3-6 month range also decreased in October, it is more likely that sellers bought in July rather than April.

This shows that bottom fishermen started taking profits in July.

The source: Glass knot

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

SN_Nour

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Ripple (XRP), Polkadot (DOT) Or Remittix (RTX)? Why Top Analysts Are Picking The Latter, Let’s Break It Down

Selecting the correct investment can be the secret to unlocking great financial success in the…

1 hour ago

Best New Meme Coins to Join for Long-Term Returns: Join BTFD Coin’s Lively Bulls Squad or MOG and Neiro’s Dip-Buying Opportunities

Looking for the best new meme coins to join for long-term returns? Explore BTFD Coin,…

5 hours ago

South Korean Crypto Holdings Now Under Close Scrutiny Ahead of January 31

Agencies involved in South Korean crypto policies may face additional scrutiny regarding access to digital…

6 hours ago

New Standard Chartered Crypto Division Launched in Luxembourg

Standard Chartered crypto division aims to capitalize on the increasing demand for digital asset security…

6 hours ago

CFTC Subpoena to Coinbase Leaves Users Worried Over Leaked Data

The CFTC subpoena to Coinbase has unsettled some Coinbase clients regarding the potential disclosure of…

7 hours ago