It does not seem that the bearish trend of Bitcoin will be over soon. In fact, the price of Bitcoin price briefly touched the $25,000 mark, in recent times. However, that bullish trend received a bearish rejection from the investors, as they feared a trend reversal. This, in turn, led to the rapid decline of the Bitcoin price. This rapid price decline was followed by rapid liquidations.
All these combined to make this bear market a really painful one for Bitcoin users. In addition, the recent speech by Jerome Powell has also been a factor that has negatively impacted the Bitcoin market.
However, it seems that various new factors are slowly coming up, that are sending strong bearish signals for the Bitcoin market. Recently, the on-chain data brought to the fore the fact that around 5K Bitcoin was sitting dormant for 7 years to 10 years ago. Recently, a movement has been noticed in those Bitcoin. This very fact can prove ultimately to be bearish for the BTC market.
If you wish to learn more about this recent event of Bitcoin, then this article is the perfect stop for you. Keep reading this article to know more about the new bearish sign for Bitcoin.
The Movement of 7yr-10yr Old Coins
Recently, an analyst stated in a CryptoQuant post that BTC has witnessed a bearish trend this year, every time when such old coins have moved. In fact, in this regard, the “spent output age bands” indicator becomes essential. This particular indicator informs us about the selling behaviour of the different coin age holder groups available in the BTC market.
This indicator checks the history of each sold coin. In doing this, the indicator also traces the last time when the particular coin moved. Depending on the coin’s period of dormancy, the indicator assigns an age group to it. Whenever that coin will be sold, that will mean a spike for that particular group. In this recent case, the age group of the concerned coins is 7 years to 10 years old. This group stores all those coins that have been dormant for that period of time, before moving.
CryptoQuant published a graph showing the trend in the Bitcoin spent outputs for this specific age band for the last few months. According to that graph, there has been a significant spike in the sent output of that particular group of coins, in the last few months. The graph distinctly shows that one such spike occurred in March, shortly before a bullish trend of BTC.
After that, the price fell sharply. Another such spike happened in May when the bearish trend had already set in. In fact, in July too, there was a short spike. On the 28th of this month, another such spike occurred amounting to a large 5k BTC.
The BTC price has recently seen a decline. Therefore, there is every chance that another bearish price drop is on the table, following the pattern of May. However, as the analyst of CryptoQuant states, this time the coins have not moved to the exchanges.
Therefore, it is difficult to predict a bearish trend. However, history should always serve as a warning in this case.