Bitcoin recent price movements have been nothing short of a rollercoaster ride. Earlier this week, BTC traded below $90,000 and quickly bounced back to above $100,000. As of today, the asset now hovers above $98,000.
Amid this price performance, CryptoQuant contributor XBTManager has provided insights into an important on-chain metric, highlighting a notable shift in the 6-12 month spent output age bands. This activity sheds light on possible market dynamics and future price developments.
The 6-12 month spent output age band reveals instances where long-held Bitcoin is moved, offering a glimpse into shifting market behavior.
According to XBTManager, a significant amount49,700 BTChas recently been spent in this category today. Such substantial movement can often precede market volatility, as it may signal larger holders or dormant wallets re-entering active circulation.
This sudden activity raises questions about how the market might react. Historically, large movements in older Bitcoin holdings can create temporary selling pressure. If these coins are sold, it can lead to short-term further price drops, potentially causing retail investors to panic.
However, this downward trend can also set the stage for a rebound, with prices recovering as buyers absorb the new supply. The analyst wrote: