Several of Bitcoin’s recent metrics indicate the price momentum may have stalled for a while. Spent outputs that are both relatively new and old are spiking, whereas the exchange outflow is drying up. An interesting situation, although one that seems to indicate there will be some price volatility shortly.
Bitcoin Spent Outputs Are Rising
It is always worthwhile to look at the various Bitcoin metrics that go beyond the price and trading volume. There is a lot more to the crypto industry than people realize. Spent outputs, for example, can help determine if there will be an influx of funds across various public platforms, such as exchanges and wallets.
The spent outputs that have a lifespan of five to seven years serving as an exciting example. For the most part, these outputs remain unspent for longer periods. That can be interpreted as a sign of the users holding these coins for the long term to see them appreciate in value.
When these spent outputs note an increase in activity, there is a reason for concern. The number of spent outputs with this lifespan has now hit a one-month high of 73.399. A strong increase from the 20-ish level recorded just a few weeks ago. Such a sudden increase is problematic for many reasons, as it indicates the overall liquidity of BTC is on the rise.
Surprisingly, the Bitcoin outputs with a lifespan of three to six months are also noting increasing activity. One can interpret this data to confirm how many people want quick profit on their Bitcoin holdings. Not entirely abnormal, but the current one-month high can add more market pressure. Considering the uneasy BTC price momentum in recent weeks, things may get a lot more volatile in the future.
Exchange Outflow Drops
Coinciding with the Bitcoin spent outputs momentum comes a decrease in exchange outflow. The outflow determines if people are withdrawing more BTC from exchanges compared to deposits. As this number decreases, there will automatically be more liquidity across trading platforms. A healthy development, on paper, but also worrisome in terms of extra liquidity.
The one-month low for exchange outflow volume is not too surprising. Bitcoin has shown some price momentum recently, although nothing too convincing. It is possible traders expect to make more money by keeping liquidity on trading platforms. Only time will tell if they are correct in their assumption.
It is too early to determine what all of this will mean for the future Bitcoin price. Some of this week’s momentum has been negated over the weekend. However, today’s price remains somewhat stable, indicating anything can happen in the coming days and weeks. A new all-time high BTC price seems well out of reach, considering the current market circumstances and these metrics.