The research firm analyzed the percentage of unspent Bitcoin that had been untouched for different periods of time. This ranged from less than three months to over five years.
It found that as the number of coins that were untouched for at least one year had increased, the number of UTXOs untouched for at least one year decreased as well. This led to the research firm concluding that long-term BTC holders had commenced accumulation. It then likened to the one that occurred at the end of 2014. It then predicted a price bottom in the first quarter of 2019.“While the retail 1M-3M wave mirrors a positive sentiment, longer timeframes like 3Y-5Y clearly show de-risking. The shorter-term traders 3M-6M are still reeling from heavy losses. However, the institutional level 2Y-3Y shows signs of accumulation.
“This means fewer buyers and more sellers. Probably, at the same time as it becomes positive, we will see a local top and then an increase in selling pressure in the future market, which can lead to the continuation of the downtrend and loss of current support.”