Supply Last Active 1y-2y

Supply Last Active 1y-2y Indicator

The Supply Last Active 1y-2y indicator measures the amount or percentage of BTC circulating supply that has been active (moved or transacted) within the past one to two years. This metric provides insights into medium- to long-term holder behavior, market trends, and participant engagement.

Steps to Use the Supply Last Active 1y-2y Indicator

1. Understand the Concept:

• Medium- to Long-Term Active Supply: Represents the portion of the circulating supply that was active between one and two years ago.

• Relevance: Reflects the behavior of holders who maintain a medium- to long-term investment horizon, offering insights into market confidence and stability.

2. Interpret the Supply Last Active 1y-2y Indicator:

• High Percentage: Indicates a significant portion of the supply has not moved for over a year, signaling strong holder confidence or reduced market activity.

• Low Percentage: Suggests higher turnover in this timeframe, reflecting increased market activity or changes in sentiment.

• Trends Over Time: Analyze shifts in activity to understand the balance between long-term holding and market engagement.

3. Analyze Historical Patterns:

• Bull Markets: Medium- to long-term holders may start realizing profits, leading to a decrease in supply last active 1y-2y.

• Bear Markets: An increasing percentage often reflects accumulation and long-term confidence in the asset.

• Market Cycles: Changes in this metric often align with key phases of accumulation, distribution, and consolidation.

4. Make Decisions:

• During High Percentages: Monitor for signs of long-term confidence or reduced market activity, which may precede accumulation phases.

• During Low Percentages: Evaluate potential market volatility or distribution by medium- to long-term holders.

• Validate Sentiment Shifts: Use this metric alongside other indicators to confirm changes in market sentiment and activity.

Tips:

• Combine with Long-Term Holder Metrics: Use alongside other indicators like long-term holder supply and realized cap for a holistic analysis.

• Monitor Cyclical Trends: Pay attention to increases or decreases in this metric during market transitions.

• Use Historical Comparisons: Compare current activity levels with historical data to identify recurring patterns and signals.

• Contextualize with Market Conditions: Consider external factors such as macroeconomic trends or major network developments.

How to Use the Indicator Effectively

• Assess Long-Term Confidence: Use high levels of 1y-2y activity to gauge long-term holder behavior and market sentiment.

• Identify Market Phases: Monitor changes in activity to detect accumulation, distribution, or stabilization phases.

• Support Investment Strategies: Incorporate insights from this metric into long-term portfolio planning and market analysis.

Created By: This indicator is a widely recognized tool in blockchain analytics.