On-chain analytics provider Santiment has revealed more interesting data that could potentially serve as an indicator for another leg up in price action for Bitcoin.
Activity on the network in terms of daily addresses has surged since Q2, 2020, but the bull run did not really kick in until December of the same year. The analytics provider has used an observation from certified technical analyst “CRYPTO₿IRB” in that an uptick in on-chain activity for daily addresses could suggest that the $60,000 price level may be broken again soon.
“$BTC seven day average over daily active addresses in sideways while price action climbs. The upside trend is the strongest when backed by onchain trends,”
There is a clear correlation in BTC address activity, which hit record high in January, and price action so when the former increases again, a price move should be expected.
Analytics provider Glassnode has reported a different data set that indicates holders of older Bitcoins have been reluctant to sell them while the younger supply has moved less than in previous bull market cycles.
It noted that at previous Bitcoin price tops, around 50% of the supply was younger than 6 months, whereas currently, it is significantly below this level at 36%.
During bull markets coins older than six months tend to be offloaded as they were purchased during the bear stage of the market, however, this metric is decreasing.
The analytics provider has looked at the supply of coins moving that is younger than six months which has also decreased compared to the last bull cycle suggesting that those holding newer coins are also becoming reluctant to sell them so quickly.
These hodl waves can be used to measure market sentiment, which is still overwhelmingly bullish as prices hover in the high $50k zone.
At the time of press, Bitcoin was trading marginally higher on the day at $57,850. Over the weekend the asset topped out at $59,800 on Saturday, Mar. 20, but fell back on Sunday hitting an intraday low of $56,000 according to Tradingview.com.
BTC has remained range-bound for the past ten days or so and needs to top $60k again for any chances of a new all-time high. On the downside, support can be found in the $54k region but it has remained above that for the past five days.