Analysts claim that movements of inactive addresses were one of the main reasons for Bitcoin’s recent decline.
According to the CryptoQuant analyst, over 52,000 Bitcoins (BTC) held for less than three months were moved on the blockchain in the last three days. In addition, 75,228 coins that were between three and six months old were also moved.
These assets belong to short-term and medium-term holders. According to CryptoQuant data, 2,834 BTC tokens that were inactive for between six months and two years began making on-chain movements.
While the price continues to consolidate below the $60,000 mark, data shows that 16,003 Bitcoins between the ages of five and seven have entered the market.
The analyst claims that these moves have contributed to the pessimistic sentiment across the market and must “stop.”
“When bitcoins that have been inactive for a long time are moved, it is usually in preparation for something, and they may be used for sale.”
The CryptoQuant analyst wrote:
While Bitcoin’s funding rate suggests a possible recovery in the asset’s price, the increased amount of dormant supply could still trigger a further price decline.
Bitcoin is down 0.2% over the past 24 hours and is trading at $59,750 at the time of writing. The asset’s market cap currently stands at $1.17 trillion with a daily trading volume of $33 billion.
The BTC Relative Strength Index is still at the 46 mark, according to data from price site crypto.news. The indicator shows that Bitcoin is oversold at this price point but is approaching the neutral zone as the price fluctuates near the $60,000 mark.
