7 Years Old 2500 Bitcoin On Move As Analyst Highlights Two Crucial Indicators of Imminent BTC Downtrend

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CryptoQuant recently shared an analysis highlighting two metrics that could be harbingers of an imminent Bitcoin (BTC) fall.

Maartunn the crypto quant analyst, also highlighted that 2500 Bitcoin from a dormant wallet aged 5 to 7 years are on the move.

Dormant #Bitcoin on the move?

This time a 2500 $BTC transaction with the age 5y ~ 7y. Those are bought somewhere between 2015 & 2017.

Data by @cryptoquant_com pic.twitter.com/5AekullOgu

— Maartunn (@JA_Maartun) September 19, 2022

It’s no news that Bitcoin has persistently felt the effects of the prevailing bear market. The current cycle has sunk the asset to shocking lows, but a recent CryptoQuant analysis forecasts subsequent dips, citing two significant metrics. According to MAC.D, a CryptoQuant analyst, these metrics have already been observed.

The official CryptoQuant Twitter handle shared the analysis on Monday. 

Here are two of the signals you will notice before the $BTC falls.

«Two recent signs of indicators have occurred, indicating a strong fall signal.»
by @MAC_D46035

Read More?https://t.co/DYYrPAUSAZ

— CryptoQuant.com (@cryptoquant_com) September 19, 2022

The analysis takes a close look at the Bitcoin Spent Output Age Bands (7Y~10Y) chart. The chart indicates significant whale holder movements at different intervals. Each time a crucial whale movement occurred, a downtrend ensued. This pattern occurred six out of seven times.

MAC.D noted that a subsequent movement of over 5K BTC from the whale(s) which held BTC in its 7th year could influence a massive downward price action in the future. The Spent Output Age Bands signal a recent equivalent whale movement, indicating an impending downtrend, And today 2500 Bitcoin are on the move.

The second metric MAC.D highlighted related to Ethereum’s dominance in the broader crypto market. “When BTC is simply transverse, the excessive rise of Ethereum creates a bubble,” the analyst noted. 

As the chart indicates, historical data shows a sharp drop in Bitcoin’s price following an ETH market dominance above 20%. The scenario has played out five out of five times since 2018. Data suggests that Ethereum’s market dominance recently rose past 20%, indicating a likely fall recurrence.

Data from crypto market intelligence provider Messari indicates that Ethereum’s dominance soared above the 20%-mark on September 11 when ETH reached a high of $1,782 – one of its highest points in September so far. Notwithstanding, Ethereum’s market dominance currently sits at 17.81% at the time of reporting.

These two metrics have played out, according to MAC.D, suggesting an impending downward movement for BTC, according to MAC.D. He advised investors to prepare properly for the looming downtrend.

Bitcoin (BTC) is currently feeling the cold hands of the Crypto Winter, changing hands at $19,070 as of press time. The asset recently dipped to a 3-month low of $18,432 before climbing back above the $19k support. With a dip of 14.58% in the past week, Bitcoin’s recent price action does not particularly show auspicious indications.

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