What is SOAB:
The Spent Output Age Bands (SOAB) metric is a valuable tool for understanding Bitcoin market dynamics. #SOAB classifies spent coins into different categories based on their age, visually representing these groups in different color bands relative to the total volume of coins moved. Each band indicates the percentage of outputs spent that were generated within the timeline identified in the accompanying legend.
Understanding the SOAB Heatmap:
Age Band Activity:
Brighter or warmer colors indicate higher activity in spending.
Outputs in these age bands are being spent more frequently.
Darker or cooler colors indicate lower spending activity.
Age Band Longevity:
The heatmap reveals the lifespan of spent outputs in different age bands.
Consistently bright or warm colors suggest age bands that retain value for longer periods.
Spent Output Behavior:
Analyzing color changes over time helps understand spent output behavior.
Patterns like sudden spending spikes or prolonged inactivity can be identified.
Age Band Transition:
Tracking color changes highlights spending patterns and output movement.
Understanding how outputs age and move through different age bands becomes possible.
Source:- CryptoQuant 
Significance of the SOAB Heatmap:
Identifying Dominant Market Participants:
The heatmap helps identify if market shifts are driven by HODLers or newer participants.
By assessing spending patterns across age bands, dominant market participants can be inferred.
Analyzing Coin Lifespan:
Coin lifespan is visualized, providing insights into how long certain outputs retain value.
Understanding the longevity of coins can help detect trends and predict future market movements. #Bitcoin
Detecting Market Behavior:
Patterns observed in the heatmap indicate market behavior and sentiment.
Sudden spending spikes may reflect market volatility, while prolonged inactivity may signal stability. $BTC
Planning Investment Strategies:
Investors can leverage the heatmap to devise informed investment strategies.
Identifying age bands with longer lifespans or higher activity can guide decision-making. #cryptocurrency
