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Bitcoin (BTC) On-Chain Analysis: Old Addresses Not Taking Profit Despite Recent All-Time High

2 mins
Updated by Kyle Baird
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In Brief

  • Older bitcoin addresses have slowed down on their profit taking.
  • Liveliness has been decreasing since its Aug 5 all-time high.
  • ASOL has been decreasing since its July all-time high.
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BeInCrypto takes a look at bitcoin on-chain indicators that relate to BTC lifespan, such as Liveliness and Average Spent Output Lifespan (ASOL). This is done in order to determine if older coins are being sold for profits during this rally or are staying put instead. 

Liveliness is used to determine if old coins are being spent. The metric gives a value between 0 and 1. It’s created by dividing the sum of Coin Days Destroyed with the sum of all coins that have been created. Higher values mean that old coins are on the move, while low values mean that they are staying dormant. 

The indicator has often reached a high during the top of bullish cycles. 

ASOL measures the average age of each transaction output. A high reading means that coins that are currently being transacted haven’t been previously moved for a long period of time.

For an analysis of its historical movement, click here.

Bitcoin liveliness indicator

Liveliness reached an all-time high reading of 0.622 on Aug 5 (black circle). This transpired during the rebound after the July lows near $30,000. 

At the time, this looked like a bearish sign, since it meant that old coins were being moved. This usually transpires during relief rallies or top-of-market cycles. 

However, liveliness has been decreasing since, and is currently at 0.6175, despite the price recently reaching an all-time high. This is a bullish sign that suggests that older coins are not being spent and supports the possibility that the current upward move is a continuation of the bullish market cycle.

Average spent output lifespan (ASOL)

ASOL reached its initial high of 84.3 on Jan 13. This meant that for each transaction, the BTC had previously not moved for an average of 84.3 days. 

The high occurred at the first drop after the then all-time high price of $40,771. This was a result of profit-taking during the bounce after the first retracement. Following this, ASOL decreased considerably. 

Similar to liveliness, ASOL spiked considerably on Aug 22, reaching a high of 110. This occurred after the BTC price had bounced from $30,000 to $49,000. At the time, this suggested that the upward move was a relief rally, but ASOL has been decreasing since. 

Therefore, both liveliness and ASOL show that there was some profit-taking on the initial bounce to $50,000, but that has subsided in the ongoing upward move, and older coins are now dormant.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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