Bitcoin Average Dormancy: Understanding the Key Metric for Market Analysis

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Bitcoin average dormancy is a crucial metric in cryptocurrency analysis, measuring the average age of coins moved in transactions. This indicator helps investors gauge market sentiment and predict price trends. By analyzing dormancy, one can identify periods of accumulation or distribution, providing insights into long-term holder behavior.

For instance, a high average dormancy suggests that older coins are being spent, which may signal selling pressure. Conversely, low dormancy indicates recent activity, often linked to short-term trading. This product is essential for traders seeking to optimize their strategies based on historical data patterns.