we can see a constructive spike in receiving entities (those taking custody of coins) whilst sending entities (those spending coins) remains relatively flat. This is an early trend change and one that would indicate a more positive accumulation type environment if it persists. It highlights that of the volume that is transacting, a reasonable portion looks to be accumulation, and relatively little is entities exiting the network.
What would be relatively bearish is to see a significant increase in older coins (>1yr) spending during this relief rally as was seen in 2018 after the blow-off top.
So far, we have not seen such behaviour. If general dormancy of older coins persists, it would suggest conviction to HODL remains relatively strong and favour a more constructive view on market structure moving forwards. Conversely, the spending of older coins en mass would indicate a flush of illiquid coins are returning to liquid supply and a more bearish outlook ahead.
