• Coins MarketCap
    • Coins MarketCap
    • Crypto Calculator
    • Top Gainers and Loser of the day
  • Crypto Exchanges
  • Bitcoin News
  • Crypto News
    • Cryptocurrency
    • Blockchain
    • Finance
    • Investing
    • View all latest Updates regarding crypto
Monday, February 6, 2023
WIREOPEDIA
No Result
View All Result
Contribute!
CONTACT US
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
WIREOPEDIA
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
No Result
View All Result
WIREOPEDIA
No Result
View All Result
Home Blockchain

How ‘Liveliness’ Can Track Bitcoin Price Bull And Bear Cycles

wireopedia memeber by wireopedia memeber
December 8, 2021
in Blockchain, Crypto, Crypto Market, Cryptocurrency, Finance, Investing, Market
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

The Liveliness on-chain metric tracks accumulation and distribution behavior of bitcoin holders, corresponding to price.

You might also like

Over $76M invested in crypto funds in past 7 days

Digital Yuan Gifts In China During Holiday To Increase Adoption, Report Says

FTX Debtors Demand Return of Funds Given to US Politicians and Super PACs

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Today, we’re revisiting a useful on-chain metric, Liveliness, that tracks the accumulation and distribution behavior of HODLers. As a refresher, Liveliness is calculated as a ratio: the sum of all Coin Days Destroyed and the sum of all coin days ever created.

  • Liveliness increases as long-term holders distribute more coins, creating more coin days destroyed relative to coin days created.
  • Liveliness decreases as long-term holders accumulate more coins, creating less coin days destroyed relative to coin days created.

Throughout bitcoin’s history, we see clear patterns of long-term holder distribution and accumulation that drive bull and bear market cycles that can be easily tracked with Liveliness. 

Bitcoin’s Liveliness over history.

Over the last year, we saw a rising Liveliness metric with long-term holders distributing more coins during the previous all-time high price rise from January through May. After that came a strong period of accumulation during lower prices, up until October where some long-term holder distribution started to take shape. Over the last couple weeks with price potentially reaching a bottom after the recent deleveraging event, the Liveliness trend looks to have started a shift back towards a period of slight accumulation.

Bitcoin Liveliness over a two-year period.

This would be a good sign to see long-term holders accumulate at these lower prices before another period of distribution. Accelerated long-term holder distribution at the current bitcoin price would signal a lack of confidence from the “smart money” that bitcoin has more upside over the next few months.

Bitcoin Liveliness over a three-month period.

Another way to view the Liveliness trend is to look at Binary Liveliness. Binary Liveliness is designed to help identify periods of accumulation and high distribution by older coins. The green value on the below chart will produce 1 when Liveliness is higher than its 30-day moving average. When it’s below the average, it produces 0.

The blue line will return a 1 when Liveliness is higher today than the previous day or else it produces 0. A 30-day moving average is then applied to these results.

What the current data shows, looking at the blue line, is that Binary Liveliness is starting to trend and sustain lower values which signals Liveliness is in a potential new downtrend, or a period of more long-term holder accumulation.

Binary Liveliness indicates we’re entering a period of accumulation.

Read Entire Article
Tags: BitcoinmagazineBlockchainCoin SurgesCryptocurrenciesMarket StoriesTrading
Share30Tweet19
wireopedia memeber

wireopedia memeber

Recommended For You

Over $76M invested in crypto funds in past 7 days

by wireopedia memeber
February 6, 2023
0

A total of $76 million was invested in digital asset products during the week of January 30 to February, according to a CoinShares report The post Over $76M...

Read more

Digital Yuan Gifts In China During Holiday To Increase Adoption, Report Says

by wireopedia memeber
February 6, 2023
0

Recent events in China indicate the country’s paradigm shift concerning digital currency The digital yuan (e-CNY) is gradually forming a significant part of the Chinese currency through its

Read more

FTX Debtors Demand Return of Funds Given to US Politicians and Super PACs

by wireopedia memeber
February 6, 2023
0

FTX debtors are seeking to claw back millions of dollars given to US political action committees (PACs) and political figures Confidential letters have been sent to individuals and...

Read more

BSV Price Prediction: Will It Survive this Consolidation Phase and Break Above $50?

by wireopedia memeber
February 6, 2023
0

Over the past month, cryptocurrencies have been growing in value However, Bitcoin SV (BSV) price has been consolidating inside the horizontal price bracket region The

Read more

Community votes to deploy Uniswap v3 on Boba Network

by wireopedia memeber
February 6, 2023
0

Enya Labs co-founder Alan Chiu said that the move will allow developers to build on and off-chain DeFi applications on

Read more
Next Post

CleanSpark’s 20 MW Bitcoin Mining Farm To Be Immersion Cooled

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Bitcoin Price Prediction for Today, May 8: BTC Bears Could Demolish $34,000 Support

May 8, 2022

Far-right activist arrested on suspicion of fatal shooting of rugby player

March 23, 2022

Titanium Blockchain Pleads Guilty In $21M Crypto Securities Fraud

July 27, 2022

Browse by Category

  • Blockchain
  • Breaking News
  • Business
  • Crypto
  • Crypto Market
  • Cryptocurrency
  • Defense
  • Entertainment
  • Finance
  • Health Care
  • Investing
  • Market
  • Politics
  • Strange
  • Technology
  • UK News
  • US News
  • World
WIREOPEDIA

Wireopedia is an automated news feed. The Wireopedia AI pulls from sources with different views so you can see the various sides of different arguments and make a decision for yourself. Wireopedia will be firmly committed to the public interest and democratic values.

Privacy Policy     Terms and Conditions

CATEGORIES

  • Blockchain
  • Breaking News
  • Business
  • Crypto
  • Crypto Market
  • Cryptocurrency
  • Defense
  • Entertainment
  • Finance
  • Health Care
  • Investing
  • Market
  • Politics
  • Strange
  • Technology
  • UK News
  • US News
  • World

BROWSE BY TAG

Bitcoin Bitcoinist Bitcoinmagazine Blockchain Blockonomi Breaking News Business BuzzFeed Celebrity News Coin Surges Cointelegraph Cryptocurrencies Cryptoslate Defense Entertainment Health Care insidebitcoins Market Stories newsbtc Politico Skynews Strange Technology Trading UK US World

RECENT POSTS

  • Dramatic rescues in Turkey and Syria amid growing fears over the safety of buildings
  • ‘A wonderful teacher and delightful person’: Colleagues pay tribute to head found dead with daughter and husband
  • Police officer raped by Carrick says colleagues would have ‘laughed’ if she reported it
  • Over $76M invested in crypto funds in past 7 days
  • Digital Yuan Gifts In China During Holiday To Increase Adoption, Report Says

© 2022 WIREOPEDIA - All right reserved.

No Result
View All Result
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
  • Contribute!

© 2022 WIREOPEDIA - All right reserved.

  • bitcoinBitcoin(BTC)$22,941.00-0.70%
  • ethereumEthereum(ETH)$1,641.16-0.25%
  • tetherTether(USDT)$1.00-0.24%
  • binancecoinBNB(BNB)$329.030.58%
  • usd-coinUSD Coin(USDC)$1.00-0.30%
  • rippleXRP(XRP)$0.399673-0.17%
  • binance-usdBinance USD(BUSD)$1.00-0.23%
  • cardanoCardano(ADA)$0.3932910.63%
  • dogecoinDogecoin(DOGE)$0.092101-0.14%
  • matic-networkPolygon(MATIC)$1.210.48%
  • okbOKB(OKB)$43.690.63%
  • solanaSolana(SOL)$23.45-0.69%
  • shiba-inuShiba Inu(SHIB)$0.000014-0.75%
  • staked-etherLido Staked Ether(STETH)$1,636.36-0.15%
  • polkadotPolkadot(DOT)$6.731.22%
  • litecoinLitecoin(LTC)$96.990.03%
  • avalanche-2Avalanche(AVAX)$20.26-0.12%
  • tronTRON(TRX)$0.063588-0.92%
  • uniswapUniswap(UNI)$6.87-0.84%
  • daiDai(DAI)$1.00-0.16%
  • cosmosCosmos Hub(ATOM)$14.500.83%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$22,889.00-0.63%
  • chainlinkChainlink(LINK)$7.010.30%
  • bitcoin-cashBitcoin Cash(BCH)$133.97-0.39%
  • stellarStellar(XLM)$0.091458-0.17%
  • crypto-com-chainCronos(CRO)$0.081028-0.25%
  • nearNEAR Protocol(NEAR)$2.38-0.34%
  • filecoinFilecoin(FIL)$5.310.95%
  • algorandAlgorand(ALGO)$0.2592460.13%
  • vechainVeChain(VET)$0.0243550.30%
  • axie-infinityAxie Infinity(AXS)$11.000.10%
  • elrond-erd-2MultiversX(EGLD)$45.02-0.15%
  • terra-lunaTerra Luna Classic(LUNC)$0.0001862.62%
  • compound-ethercETH(CETH)$32.89-0.36%
  • terrausdTerraClassicUSD(USTC)$0.0325561.22%
  • ftx-tokenFTX(FTT)$1.91-20.60%