Bitcoin “Diamond Hands” Start To Break As 1yr+ Supply Ramps Up Selling

Keshav Verma

2 years ago

3 mins read

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Data shows the Bitcoin supply older than 1 year has shown accelerating movement recently, suggesting even the crypto’s stronger hands are feeling the fear in the market.

Bitcoin Diamond Hands Are Starting To Budge In Current Market

According to the latest weekly report from Glassnode, BTC’s older supply has been observing selling in recent days.

The relevant indicator here is the “revived supply last active 1+ years,” which measures how many coins that have been sitting still since at least one year ago are seeing movement per day.

When the value of this metric spikes up, it means a large amount of coins belonging to Bitcoin hodlers are being moved at the moment.

Such a trend, when prolonged over a period, may be bearish for the crypto’s price as this kind of movement can imply the diamond hands in the market have been selling.

On the other hand, low values of the metric imply there hasn’t been any significant movement in the supply older than one year recently.

This trend shows hodlers are holding strong on to their coins, a sign that could be either neutral or bullish for the coin’s value.

Now, here is a chart that shows the trend in the revived Bitcoin supply last active 1+ year ago over the past 12 months:

The value of the indicator seems to have been high recently | Source: Glassnode's The Week Onchain - Week 25, 2022

As you can see in the above graph, a large amount of coins last active more than a year ago showed movement in recent days.

Also, not just that, this spending of old coins has been rather accelerating, now reaching a value of 20k to 36k BTC per day.

This implies that these long-term holders have been ramping up their selling in the last few days as the price of the crypto has struggled.

The trend suggests that the recent crash has put fear and panic among even the stronger of Bitcoin hands, who are usually the last to budge during selloffs.

If the selling of coins older than one year continues on, then BTC could observe further downtrend in the near future.

BTC Price

At the time of writing, Bitcoin’s price floats around $21k, down 5% in the last seven days. Over the past month, the crypto has lost 28% in value.

The below chart shows the trend in the price of the coin over the last five days.

Looks like the value of the crypto has been steadily rising over the last few days | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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