- The Bitcoin total coin age distribution chart has shown a steep decline since May 2, 2023.
- BTC’s foreign exchange reserve fell while off-exchange supply increased.
The overall crypto market has recently taken a sideways path, which is why most cryptos do not exhibit high price volatility. Bitcoin [BTC] was not spared either, as the price hovered below $28,000 for quite some time.
Read From Bitcoin [BTC] Price prediction 2023-24
Interestingly enough, CryptoQuant’s analysis pointed to a factor that could have influenced BTC’s relatively limited price movement in recent weeks.
BTC’s price movement has been disheartening, as after the last price pump, some expected a further increase. However, are there any chances of a northern wave coming soon? Let’s see.
This limited Bitcoin…
AxelAdlerJr, an author and analyst at CryptoQuant, published a analysis emphasize an important reason behind it BTC‘s price unable to cross the $28,000 mark.
According to the analysis, the problem was profit-taking by investors who bought Bitcoin in the amount of $28,600. This cohort held the coins for a period of 3 months to 6 months.
Source: CryptoQuant
The author used the Bitcoin: Sum Coin Age Distribution chart to establish his point. After May 2, 2023, there was a sharp drop on the chart, indicating that the group of investors must have liquidated their holdings in large amounts.
This suggested that Bitcoin buyers who made their purchases during the stated time frame were likely to want to realize their profits. And the increase in sales volume on the market put pressure on the price. Therefore, the price of BTC is prevented from going up.
Bitcoin whales were up to something
While the market remained less volatile, BTC whales reacted differently. According to Glassnode, the largest whales, those with more than 10,000 BTC, moved from a high accumulation regime to one with evenly balanced inflows and outflows.
When reviewing the #Bitcoin Accumulation trend score by cohort, we note that the largest whales (>10,000 BTC) have moved from a regime of heavy accumulation to one of equally balanced inflow and outflow.
With all the other major cohorts aggressively distributing coins, the… pic.twitter.com/mzoORrDyhs
— glassnode (@glassnode) May 17, 2023
While the largest whales went from an accumulation phase to a balanced phase, the rest of the market seems to have been accumulating BTC since the price drop in early May.
According to Sentiment’s chart, the supply of BTC on exchanges has fallen, while the supply has increased off-exchanges. This was generally positive as it reflected investor confidence in the king of cryptos.
In addition, the number of addresses of BTC also contains 0.1+ coins reaches an ATH of 4,372,629.
Source: Sentiment
BTC reaching $28,000 soon?
Given the unpredictable nature of the crypto market, nothing can be said for sure. However, a look at BTC’s stats suggests that the possibility of BTC crossing $28,000 cannot be ruled out.
For example, the exchange rate reserve of BTC was decreasingindicating that the coin was not under selling pressure.
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In addition, Bitcoin’s buy/sell ratio indicated that buying sentiment was dominant in the derivatives market. BTCThe funding rate was also green.
This indicated that traders with a long position were dominant and willing to pay traders with a short position.
Source: CryptoQuant
