Liveliness is an on-chain metric used to assess the balance between HODLing behavior (holding coins for the long term) and trading activity of investors.
⭐️If the Liveliness metric increases: It indicates that trading activity is high, meaning many long-held coins are being moved or sold.
⭐️If the Liveliness metric decreases: It indicates that coins are being accumulated and transactions are occurring less frequently, reflecting a HODLing trend.
Distribution and profit-taking phases in 2024:
-> March 2024: Bitcoin reaches its previous ATH of $73,000, long-term holders sold 934k BTC.
-> October 2024: The Mt.Gox phase begins, resulting in the liquidation of 131k BTC.
-> Current phase: over 507k BTC are being distributed.
Distribution Level (low Coinday Destruction): This indicates that the majority of BTC is being distributed by "younger" coins (average age of about 6 months) rather than long-held coins (over 5 years).
The slight increase in LTL due to the trading of coins around 6 months old reflects a local profit-taking sentiment as the price approaches the $100k mark.
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