Bitcoin's ongoing price movement has prompted intense scrutiny as it continues to dip below the $100,000 mark. Despite reaching an all-time high above $108,000 last week, the cryptocurrency has struggled to maintain upward momentum since then.
With this achievement, BTC's on-chain data was exposed to determine the factors driving recent selling pressure and investor behavior. One major focus has been on the Spending Yield Age Bonds (SOAB) indicator, which provides valuable insights into Bitcoin holders. activity based on their holding times.
Who cashed out their Bitcoin winnings?
According to a CryptoQuant analyst called Yonsei Dent, data states that Bitcoin investors who bought their holdings between six and twelve months ago were the most active sellers in the recent price increase.
This group largely entered the market when there was the first buzz about the launch of Bitcoin spot exchange-traded funds (ETFs) earlier in the year. Although this selling activity put downward pressure on the price of Bitcoin, the asset has stabilized within the $90,000-100,000 range.
Interestingly, long-term holders, defined as those holding Bitcoin for more than a year, have shown very little selling activity. Historical trends indicate that these experienced investors are likely to expect high price levels before considering taking a large profit.
At the same time, Dent pointed out that the Binary Coin Days Destroyed (CDD) metric shows a noticeable decline in older Bitcoin being moved in December compared to November. Historically, activity from long-term holders decreased during price corrections often indicating market resilience and potential for future upside.
The analyst wrote:
The 'Binary CDD' indicator at the bottom of the chart shows a decline in older Bitcoin sales in December compared to November. This suggests that many long-term owners may expect even higher prices before selling.
Binance preserves the confidence of the token market
Speaking of higher prices, another crucial metric that suggests a big move for Bitcoin comes from the Binance Bitcoin repository, which has been steadily declining since August.
CryptoQuant Darkfost Analyzer marked that Binance database they recently reached their lowest level since January. This move is significant because a similar decline earlier in the year preceded the 90% increase in the price of Bitcoin.
The decrease in exchange reserves usually indicates that investors are moving their Bitcoin holdings away from centralized exchanges and into private wallets.
Such behavior indicates reduced sales pressure and a preference for long-term retention strategies. Historically, reductions in reserves on exchanges have often coincided with periods of strong market optimism and price rallies.
In particular, as BTC is currently still trading at a price of $95,567 down 2.7% on the past day, the confluence of these factors – the confidence of long-term holders, lower activity from older wallets, and dwindling exchange reserves – paint a very positive picture for Bitcoin at near term track.
However, it is warned that sustained buying activity will be required to break through psychological resistance levels and maintain upward momentum.
Featured image created by DALL-E, Chart from TradingView
