Bitcoin’s continued price movement has prompted intense scrutiny as it continues to move below the $100,000 mark. Despite reaching an all-time high of more than $108,000 last week, the cryptocurrency has struggled to maintain upward momentum since then.
With this functionality, BTC’s on-chain data is brought to light to reveal the factors driving recent selling pressures and investor behavior. One key focus has been the Spent Output Age Bands (SOAB) index, which provides valuable insight into the activity of Bitcoin holders based on their holding times.
Who Has Withdrawn Their Bitcoin?
According to CryptoQuant analyst Yonsei Dent, the data shows that Bitcoin investors who bought their assets within the last six to twelve months were the most active sellers during the recent price increase.
The group entered the market heavily during the initial excitement surrounding the launch of Bitcoin exchange-traded funds (ETFs) at the beginning of the year. Although this selling activity has put downward pressure on the price of Bitcoin, the asset has managed to stabilize between the $90,000–$100,000 range.
Interestingly, long-term holders, defined as those who have held Bitcoin for more than a year, have shown little selling activity. Historical trends suggest that these seasoned investors may be waiting for higher price levels before considering taking large profits.
Meanwhile, Dent pointed to the Binary Coin Days Destroyed (CDD) metric showing a significant drop in old Bitcoin moved in December compared to November. Historically, reduced activity from long-term managers during price corrections often signals market resilience and the potential for future bullishness.
A commenter wrote:
The ‘Binary CDD’ indicator at the bottom of the chart shows the decline in old Bitcoin sales in December compared to November. This suggests that many long-term owners may expect higher prices even before selling.
Binance Reserves Signal Market Confidence
Speaking of higher prices, another important metric that suggests a significant Bitcoin brewing move is coming from Binance’s Binance reserves, which have been steadily declining since August.
CryptoQuant analyst Darkfost emphasized that Binance reserves have just hit their lowest level since January. This trend is significant because a similar decline earlier in the year preceded a 90% rise in Bitcoin’s price.
A decrease in exchange reserves usually indicates that investors are moving their Bitcoins from centralized exchanges and into private wallets.
Such behavior suggests reduced selling pressure and a preference for long-term holding strategies. Historically, declining stocks in the stock market often coincide with periods of strong market optimism and price rallies.
Notably, with BTC currently trading at $95,567 down 2.7% over the past day, the combination of these factors—long-term owner confidence, reduced activity from older wallets, and reduced exchange fees—paints a cautiously optimistic picture. Bitcoin’s near-term trajectory.
However, it is cautioned that continued buying activity will be required to break through the conceptual resistance levels and maintain the high momentum.
The featured image was created with DALL-E, a Chart from TradingView
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