On-chain data provider Glassnode has shared its Lifespan 1y-2y (7d MA) Number of Output Spent metric, which could give the market a clue as to the source of the main selling pressure currently driving Bitcoin (BTC) and other cryptocurrencies down. The metrics show low entry rates and reserves, suggesting that the market hasn’t completely reversed itself, according to analysts. Here are the details…
Bitcoin on-chain analysis
The Glassnode indicator is designed to determine the number of outputs from Bitcoin wallets with different lifetimes. The Lifespan setting allows users to determine whether spent output is “old” or “young”. The analytical firm shared the data of the indicator in the past hours:
With Bitcoin Lifespan 1y-2y (7d MA), Number of Output Spent reached a 1-month high of 360,482. On December 19, 2021, 307,060, the highest level of the previous month, were observed.
“Young” spenders are typically those who use cryptocurrency to earn a decent income by holding on to it for a reasonable amount of time.
“Former” spenders are often people who change trends in the market, as their positions are likely to be significantly larger and have more influence on the market. In this case, the proportion of “old” spenders increased significantly, breaking the one-month record.