While the price of Bitcoin remained over $56,000 on Thursday, December 2, it has been trading in a state of limbo, having made its seventh unsuccessful attempt to break the $59,000-$60,000 level on December 1.
Cryptocurrency traders are unsure of the direction Bitcoin will go, but recent data on Bitcoin’s Average Spent Output Lifespan (ASOL) as of December 1, suggests confidence may be growing, according to blockchain analytics and intelligence firm Glassnode.
A decline in ASOL indicates that investor confidence is increasing and fewer coins are being spent, whilst a rise in ASOL indicates that gains are being taken during corrections.
“Bitcoin Average Spent Output Lifespan has returned to a relatively low level of 35-days after peaking in late Oct. ASOL trends higher as older coins spend, taking profits. During corrections, declining ASOL is a signal investor confidence is improving, and fewer coins are spent.” Glassnode tweeted.
