top of page
  • Writer's pictureSig

Supply Last Active 0 - 6 Months

Updated: Apr 11, 2023

Definition:

Percentage of circulating supply that has been traded in the last 6 months.


Supply Last Active 0-6 Months (SLA 0-6M) is the activity level of short-term traders, such as day traders and swing traders. Commonly referred to as weak hands, they’re traders who do not hold assets for a significant amount of time.


In the photo below, you can see the amount of supply last active between 0 and 6 months ago since 2010. One can note that peaks in SLA 0-6M occur when Bitcoin is nearing a market top.



What to watch for:


Bullish activity: If a high percentage of coins have been traded in the last 6 months, it could indicate that short-term traders are actively buying and selling, indicating a high level of market activity and potentially a bullish short to mid-term sentiment.


Market peaks: In the past, the metric of recently transferred supply (last active in the last 6 months) has reached between 35% and 50% during market highs. This is often seen as a sign of increased speculation during upward price movements.


As Warren Buffett once said, "be fearful when others are greedy, and greedy when others are fearful." This quote is a reminder that when the market is flooded with speculation and investors are rushing to buy an asset due to its upward price movement, it may be a good time to consider selling that asset. In other words, it's a time to be cautious and take profits rather than join the herd and risk getting caught in a market top.


Bearish activity: If a low percentage of coins have been traded in the last 6 months, it could indicate that short-term traders are less active, which could indicate a bearish short to mid-term sentiment or a lack of confidence in the market.



Requires Free Moonwalker Research Account



* The information contained on this Website and the resources available for download through this website is not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained on this Website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation. We have done our best to ensure that the information provided on this Website and the resources available for download are accurate and provide valuable information. Regardless of anything to the contrary, nothing available on or through this Website should be understood as a recommendation that you should not consult with a financial professional to address your particular information. MoonWalker Research expressly recommends that you seek advice from a professional.

8 views0 comments

Recent Posts

See All

Comments


bottom of page