March 28, 2024

Analysts point to BTC growth by Token Age Consumed metric

Analysts point to BTC growth by Token Age Consumed metric

Analytics company Santiment published a graph showing a surge in the Bitcoin Token Age Consumed metric.occurred yesterday shortly before the price increase:

«Our Sanbase Pro platform detected a very large spike in Token Age Consumed for BTC approximately 75 minutes before the price began to rise».

Peaks of these values ​​may indicate large transactions or movements of cryptocurrencies that have been stored for a long time.

About 75 minutes before the growth, which raised the BTC price from about $ 6,200 above $ 6,700, a huge leap occurred in the value of this parameter.

This is a fairly complex parameter that measuresthe number of tokens that have been transferred from one public address to another for a given period of time, multiplied by the number of days since their last move.

This indicator is useful for understanding the direction of price movement and, in particular, in case of strong changes.

Looking at the historical values ​​of this parameter, in the past such surges have been accompanied by subsequent increases in the price of BTC, significantly greater than the +8% that occurred yesterday.

For example, the previous surge occurred on July 29, 2019, then the price of bitcoin was approximately $ 9,600, and then on August 6 it rose to $ 11,900, rising by 24% in just a week.

However, the historical peak of the Santiment indicator occurred on November 29, 2018, when the price fell, reaching a minimum after the December bubble in 2018.

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