Breaking: 10-Year Dormant Bitcoin Addresses Outnumber Exchange Holdings
• The historical trend of Bitcoin (BTC) has been to decline in March, but this year could be different.
• An increase of 40% in the first 30 days of the year, and 6.71% in the last 14 days shows a positive technical outlook for BTC.
• On-chain data shows that holders of BTC who have not moved their coins for 10 years now outnumber those held on exchanges.
Bitcoin’s Historical Performance in March
Bitcoin [BTC] has had a „habit“ of performing poorly during the month of March over the years, making it the second-worst month excluding 2013. Miles Deutscher opined that if today’s monthly close holds true, then this would be two consecutive green months at the beginning of 2023. This raises questions regarding what to expect from March – will BTC go against its usual decline or follow suit?
The Exponential Moving Average (EMA) suggests that BTC could trend toward its performance ten years back. This is because the 20-day EMA (blue) was above the 50-day EMA (yellow). However, the Relative Strength Index (RSI) remained neutral at 50.98 – implying no strong bullish or bearish sentiment at press time.
Holders Who Have Not Moved Their Coins
On-chain analyst Will Clemente shared that 10-year dormant addresses were more than those held on exchanges at press time. This may be due to long-term holders choosing not to exit their positions during bear market seasons, while short-term speculators fail to see out such periods. Another on-chain analyst Willy Woo noted that 2.6 million BTC have not moved within this period and estimated it to grow to 3.7 million by 2030 due to events such as November 2022 FTX collapse being reaffirmed by Santiment data analysis firm.
What Does The Future Hold?
It is difficult to predict exactly how Bitcoin [BTC]’s price action will turn out and whether it will go against its usual March decline or follow suit and drop further down instead – only time will tell which direction it takes next! However, with a positive technical outlook and more coins being held by long term investors than those held on exchanges, there is potential for an uncharacteristically successful month ahead for Bitcoin [BTC].
March has traditionally posed difficult times for Bitcoin [BTC], but this year is looking promising due to a strong technical outlook and increased interest from long term holders versus those held on exchanges currently. It remains uncertain which way BTC’s price action will go however – only time can provide us with an answer!