Bitcoin Sees Increased Activity as Old Coins Move Amid Upward Trend

The Bitcoin network has recently seen a surge in activity, with a notable increase in the movement of old coins.

CryptoQuant, a leading analytics platform, highlighted this trend in a recent update, indicating that large transfers are occurring across different age bands of Bitcoin holdings. 

Old Bitcoins are on the move

“Overall, we are seeing a significant increase in the movement of coins from various age bands during this latest leg of the rise, with continuous transfers happening on the #Bitcoin network.” – By @XBTManager

Full post 👇https://t.co/LR0bvdvAOY pic.twitter.com/sUe6yqp4Xj

— CryptoQuant.com (@cryptoquant_com) September 24, 2024

This uptick comes during Bitcoin’s latest price rally, which has drawn attention from both investors and analysts. However, with the movement of older Bitcoins, concerns about potential selling pressure are growing.

Over the past few days, the Bitcoin network has witnessed substantial transfers of coins held for various durations. On September 18, 4,924 Bitcoins held for 2-3 years and 16,707 Bitcoins held for 1 week to 1 month were moved. The trend continued on September 19, with 17,160 Bitcoins held for 1 week to 1 month and 1,617 Bitcoins held for 3-6 months transferred. 

Source: CryptoQaunt

This movement intensified on September 20, with 17,019 Bitcoins held for 1 week to 1 month, 1,405 Bitcoins held for 1-3 months, 2,071 Bitcoins held for 3-6 months, 7,013 Bitcoins held for 6-12 months, 1,154 Bitcoins held for 12-18 months, and 1,457 Bitcoins held for 18 months to 2 years being moved. 

Most recently, on September 23, 29,292 Bitcoins held for 6-12 months were transferred, while on September 24, another 4,389 Bitcoins held for 1-3 months and 1,621 Bitcoins held for 1 week to 1 month were also moved. This data highlights the continued transfer of Bitcoins from different age groups as the market gains momentum.

Assessing Market Impact

These movements raise questions about whether the coins are being transferred to exchanges, potentially signaling increased selling pressure. CryptoQuant’s analysis suggests that Bitcoin’s upward trajectory may slow down as these transfers continue. 

In addition to the movement of older coins, on-chain data from CryptoQuant points to a decline in Bitcoin’s “Supply in Profit,” a key metric that shows how much of the current supply is in profit based on the current price. 

Bitcoin Supply in Profit: Market Insights

“Psychological resistance and support levels in Bitcoin shape investor sentiment. If the price surpasses this level, optimism increases; if it breaks below, selling pressure may arise” – By @0xDataScope

Link 👇https://t.co/1Nesxbpn7D pic.twitter.com/Cn2uVJHWxl

— CryptoQuant.com (@cryptoquant_com) September 20, 2024

The drop in the profitable supply shows that a lot of investors are deep in the red because of the recent volatility in the BTC price. Those who are still in profit are also pulling the breaks on selling, which can be beneficial for a steady market.

This reduction in the successful supply has placed Bitcoin nearer to the psychological shift or the wave on the chart that is so important to investors. Its fluctuation above or below this level is usually considered as some signal of the possible direction of the market. But it has to pass this level where the anticipation on the market can generate a higher price which can go to the rate of recovery.

Bitcoin’s Price Performance

As of the time of writing, Bitcoin was trading at $63,693.10, with a trading volume of over $26.45 billion over the last 24 hours. The market cap sits at $1.26 trillion, with a circulating supply of 19.75 million BTC out of a maximum of 21 million coins. Bitcoin remains the leading cryptocurrency by market capitalization despite ongoing volatility and fluctuations in price.