Bitcoin: What This ‘Grey-Haired’ Exchange Movement Could Mean for BTC
- Bitcoin’s exchange supply CDD value witnessed an increase
- BTC exchange input was lower than BTC exchange output
Bitcoin[BTC] exchange supply Coin Days Destroyed (CDD) increased tremendously as more dormant addresses moved their coins. According to CryptoQuant analyst, Tomáš Hančar, the recent movement signaled the highest since BTC hit its 2021 low.
Because of the action, investors might expect that there was one indication of an outlet. However, the BTC price action did not seem to react as it increased by 0.43% in the last 24 hours.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2023-2024
Heights and balances
However, the CDD exchange inflow was not the only metric interested in hitting highs. Hančar, in other parts of his post, mentioned that Spent Output Value Bands reached their highest since October 2019.
On considering the data, CryptoQuant showed that the exchange inflow value bands were at a point where the coin distribution was extremely high. This point indicated that both retail investors and whales were driving their BTC holdings into exchanges. Thus, the possibility of a price reaction due to selling pressure was still imminent.
Furthermore, recent actions had shown that investors may no longer be satisfied with the BTC price performance. This was evident according to the last steps aimed at volume and SOPR. Furthermore, Santiment showed that exchange flow was close to balanced.
According to data from the platform mentioned above, the BTC exchange inflow at press time was 14,700. On the other hand, the exchange value was 16,100. With a difference of less than 2,000, the status indicated that the number of investors willing to sell was less than those who accumulated.
Therefore, there was hope that BTC may not fall further in relation to its price. Yet the status also meant that talk of the kingpin already bottoming out could be valid.
Source: Sentiment
In other ends…
Despite the exchange influx from the dormant addresses, the ninety-day dormant circulation was still at a low. At press time, Santiment knew that the value stood at 5,729. However, it was noteworthy to mention that the circulation increased to 155,000 on 18 November.
Now witnessing a decline, it meant that the number of long-term BTC holdings held during the period had remained in non-transactional mode. Consequently, the decline in volume may continue unless retail investors increase the transaction rate for the royal coin.
Furthermore, Realized Market Cap Hold Waves increased to 3.63 at the time of writing. This indicated that the realized value of BTC transacted in the last seven days was worth a better price than the previous one. So if it is increased further, more BTC can be in circulation. Therefore, it can also have an impact on the price action towards an upward movement.
Source: Sentiment
