Summary
- Recent Bitcoin profit-taking movement is analyzed as a positive sign for sustaining the rally.
- On-chain data analytics firm Santiment said that the decline in Mean Dollar-Invested Age (MDIA) follows the same trend as previous bull markets.
- A drop in MDIA indicates that old Bitcoin is returning to the market, suggesting a bull run accompanied by network growth.
Recent profit-taking activities in Bitcoin (BTC) are being analyzed not as a mere end to the uptrend, but as a positive sign that could keep the rally going.
According to the cryptocurrency-focused media platform Cointelegraph on the 30th (local time), on-chain data analytics firm Santiment stated, "The Mean Dollar-Invested Age (MDIA) indicator for Bitcoin has been steadily declining since mid-April," and added, "This follows the same trend seen in previous bull markets, suggesting a continued uptrend."
MDIA is a metric measuring the average period coins have remained in wallets without movement. A decline in this number indicates that Bitcoins held for an extended period are re-entering the market. Santiment explained, "Typically in bull markets, older coins are circulated again and the MDIA decreases," adding, "This forms a positive structure that supports the rally in terms of increased real-world use and network growth."
In fact, over the past six weeks, Bitcoin's MDIA has decreased slightly from 443 days to 426 days.
Santiment further commented, "There have been some recent moves to realize profits," but emphasized, "This is evidence that the market remains active. As price gains are now accompanied by network-based circulation rather than short-term speculation, it can be viewed positively."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
