Age-old bitcoin wallets coming alive amid rally to $30,000
Bitcoin (BTC) is witnessing a reawakening of age-old wallet addresses, as its amount of supply last active in the past seven to ten years just hit a 5-year low. This metric suggests that long-term investors are engaged in profit-taking trades as they look to leverage the asset’s rally to $30,000.
The amount of bitcoin tokens last active in the past seven to ten years recently hit a low of 1.18 million BTC (representing 6% of the total bitcoin supply), per data from Glassnode. The last time this metric declined to this level was in 2018.
An overview of the Glassnode chart reveals a gradual and persistent decline in the amount of BTC tokens that were last active within the time frame. The decline began in mid-2021 and persisted into 2023.
This indicates that the redistribution campaign carried out by these long-term holders is not a new phenomenon. However, the motive behind the redistribution exercise might have changed from last year to this year.
In addition, the number of addresses holding at least 100 BTC (~$3 million) has plummeted to 15,793, a low last witnessed in December 2022. This further substantiates speculations of a redistribution trend. These addresses stood at 15,997 at the start of April.
According to crypto data resource CryptoQuant, exchange bitcoin reserves have also been experiencing a notable uptick. Data indicates that the amount of BTC on exchanges has surged to 2.7 million at the time of writing. An increase in reserve on spot exchanges indicates higher selling pressure on investors.
These metrics all point to a distribution pattern among investors, especially amid bitcoin’s recent appreciation of $30,000. After trading below it for ten months, the asset finally reclaimed the $30,000 price point on April 11.
BTC is currently changing hands at $30,196, up 0.71% in the past 24 hours. The asset has its eyes currently set on the $31,000 price territory. Still, its Relative Strength Index (RSI) suggests that it could soon face a price reversal, having slid into overbought territories.