Major Investors Distributing Bitcoins Could Impact Short-Term Prices: CryptoQuant Data Reveals

According to the data by CryptoQuant, the “Spent Output Value Bands” indicator has been used to estimate the amount of coins moved by large investors and retail holders, specifically in the range of 100,000 USD to 1 million USD. By applying an average to smooth out the variations of the indicator, it is possible to observe that every time it increases, it represents large investors distributing their coins, which subsequently leads to a price correction process.

Source: CryptoQuant

On the other hand, when the indicator retreats, it means that large investors are not interested in distributing their coins, and tend to sell when the price is rising. In the recent high, there has been an increase in the distribution of coins, which may indicate a possible warning signal for the current price.

Furthermore, it is worth noting that historically, every exact year from a historical top, the price of Bitcoin has experienced an unexpected event. Currently, it is approaching two years since the top of 64,000 USD on April 14, 2021, which further supports the warning signal.

This information highlights the impact that large investors can have on the cryptocurrency market and how their actions can affect prices. It is important for investors to keep track of indicators like the Spent Output Value Bands and stay informed about historical trends to make informed decisions about their investments.

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