The fund movement coincides with Bitcoin’s bullish situation as it looks to establish a firm position above $28,000.
Bitcoin (BTC) is witnessing the reawakening of old BTC, as whales recently moved up to 2,400 tokens that had been dormant for five to seven years. The fund movement coincides with Bitcoin’s bullish situation, as the asset looks to establish a solid position above the $28,000 price territory.
The tokens, which should be worth $66.8 million as of press time, were moved earlier today, as highlighted by CryptoQuant author Maartun who cited data from the Bitcoin: Spent Output Age Bands.
— Maartunn (@JA_Maartun) March 24, 2023
The Bitcoin Spent Output Age Bands (SOAB) is a prominent technical indicator used in cryptocurrency analysis to measure the age of the outputs (or coins) spent in a particular transaction.
A further look into the indicator reveals a growing pattern of fund movements involving BTC tokens aged three to seven years. Recall that last Friday, The Crypto Basic called attention to the movement of 3,200 BTC that had been dormant for three to five years.
Data from the SOAB shows that an additional 1,184 BTC aged three to five years moved two days ago. On the same day, whales transferred 930 Bitcoin tokens dormant for five to seven years. The purpose of these movements remains unclear, as there is limited information surrounding the transfers.
BTCs are Moving Out of Exchanges
Nonetheless, speculations of flows into exchanges could be misplaced, as on-chain data suggests otherwise. According to Glassnode, BTC has seen average outflows from exchanges for three consecutive days since March 21. The latest disclosure saw $190.5 million worth of BTC leave exchanges yesterday.
📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $1.1B in
⬅️ $1.2B out
📉 Net flow: -$190.5M#Ethereum $ETH
➡️ $655.5M in
⬅️ $872.0M out
📉 Net flow: -$216.4M#Tether (ERC20) $USDT
➡️ $1.3B in
⬅️ $1.6B out
📉 Net flow: -$290.4Mhttps://t.co/dk2HbGwPL4
— glassnode alerts (@glassnodealerts) March 24, 2023
This means that, recently, BTC funds have been leaving exchanges at a higher rate than they are entering these platforms. Moreover, Glassnode revealed on Wednesday that Bitcoin’s exchange net flow recently hit a 3-month low of negative $15.7 million.
Previous 3-month low of -$13,451,949.84 was observed on 08 March 2023
— glassnode alerts (@glassnodealerts) March 22, 2023
In addition, data from CryptoQuant corroborates the Glassnode metrics. According to the CryptoQuant BTC Exchange Netflow indicator, net deposits on exchanges are low when compared to the 7-day average. Wednesday saw the largest volume of outflows recently, with 12,715 BTC leaving exchanges on that day.
Meanwhile, BTC is currently changing hands at $27,751 as of press time, looking to reclaim the $28,000 price territory after slipping below it again barely three hours ago. The asset is currently up 1.31% in the past 24 hours.