Inactive Supply Shift Index shows reduced selling, signaling potential Bitcoin stabilization.
Long-term holder activity in the index correlates strongly with Bitcoin price movements.
Puell Multiple at 0.4 hints Bitcoin may be near a bottom, ideal for long-term accumulation.
Recent data from CryptoQuant has shed light on a metric known as the “Inactive Supply Shift Index,” which offers an approach to analyzing Bitcoin market risks. This index, closely crafted by analyzing historical Bitcoin blockchain data, could redefine how traders and analysts interpret market dynamics.
The Inactive Supply Shift Index measures the weekly changes in Bitcoin’s inactive supply, focusing on periods ranging from one to seven years. By tracking these changes, the index provides valuable insights into the behavior of long-term holders.
Notably, the index recently reverted to near-zero levels after a phase of deep negative readings, which previously coincided with Bitcoin’s price surge past $70,000.
The Inactive Supply Shift Index reveals two critical phases in Bitcoin’s market behavior. During periods of deep negative values, long-term holders who had accumulated Bitc…
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