Supply Last Active 7y-10y
Tutorial: Supply Last Active 7y-10y Indicator
The Supply Last Active 7y-10y indicator measures the amount or percentage of a BTC supply that has been inactive (not moved or transacted) for between seven and ten years. This metric provides insights into long-term holder behavior, the maturity of the network, and the potential impact of dormant supply on market dynamics.
Steps to Use the Supply Last Active 7y-10y Indicator
1. Understand the Concept:
Long-Term Dormant Supply: Represents the portion of the circulating supply that has not been active for seven to ten years.
Relevance: Highlights trends in long-term holding, potential lost coins, and the role of dormant supply in influencing scarcity and market stability.
2. Interpret the Supply Last Active 7y-10y Indicator:
High Percentage: Indicates strong long-term holding behavior or significant inactive supply, reducing effective circulating supply and increasing scarcity.
Low Percentage: Suggests higher activity or greater turnover in the market, reflecting engagement by long-term holders.
Trends Over Time: Analyze changes in this metric to assess shifts in market sentiment, network activity, and supply dynamics.
3. Analyze Historical Patterns:
Bull Markets: Long-term holders in the 7y-10y range may start realizing profits, reducing the supply percentage as coins re-enter circulation.
Bear Markets: This metric often increases as coins remain dormant, reflecting long-term confidence or potential loss.
Network Maturity: Older networks are more likely to show higher percentages in this range due to accumulated inactive supply.
4. Make Decisions:
During High Percentages: Evaluate the implications for market scarcity and reduced sell pressure, which may support price stability.
During Low Percentages: Monitor for heightened activity and redistribution of dormant coins, which could increase volatility.
Validate Market Trends: Use this metric alongside other indicators to confirm long-term sentiment and supply trends.
Tips:
Combine with Other Metrics: Pair this indicator with metrics like realized cap, active supply, and long-term holder supply for a comprehensive analysis.
Monitor Historical Patterns: Compare increases or decreases in this range with similar phases in market cycles.
Use Historical Comparisons: Evaluate current levels against past data to identify trends and market confidence.
Contextualize with Market Events: Consider macroeconomic conditions, network upgrades, or significant announcements influencing this supply range.
How to Use the Indicator Effectively
Assess Long-Term Confidence: Use high levels of 7y-10y inactivity to evaluate the impact of long-term holder behavior on market dynamics.
Identify Market Phases: Monitor changes in this metric to detect transitions between accumulation and distribution phases.
Support Long-Term Strategies: Incorporate insights from this indicator into portfolio management, scarcity modeling, and market analysis.
Created By: This indicator is a widely recognized tool in blockchain analytics.
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