Bitcoin Flashes On-Chain Signal That Triggered A 175% Rally The Last Time
07 Settembre 2024 - 6:30PM
NEWSBTC
A crypto analyst has revealed that the price of Bitcoin might be
gearing for a fresh rally after the appearance of a bullish
on-chain signal. Bitcoin UTXOs In Profit At Lowest Level Since 2023
— Here’s Why In a QuickTake post on the CryptoQuant platform, an
analyst with the pseudonym EgyHash shared an interesting on-chain
insight into the Bitcoin price. This on-chain observation revolves
around the Bitcoin UTXO (unspent transaction output) metric, which
tracks the amount of cryptocurrency that remains following the
execution of a transaction. Related Reading: Here’s How Cardano
Price Will ‘Survive’ A US Recession: Crypto Analyst The percentage
of these unspent cryptocurrencies in profit gives an insight into
the market’s current condition. For instance, an increase in
Bitcoin UTXOs in profit suggests that most investors are in the
green, which can either motivate them to keep faith in the coin or,
in some scenarios, push them to take profit. On the other hand,
when a higher percentage of UTXOs are in loss, it means that more
investors are holding a loss, suggesting a negative market
sentiment. According to the CryptoQuant analyst, the percentage of
Bitcoin UTXOs in profit has steadily declined, recently falling to
its lowest level since October 2023. Data from CryptoQuant shows
that the proportion of Bitcoin UTXOs in profit decreased from 99%
in June 2024 to 68.5% in September 2024. Interestingly, this market
phenomenon has coincided with a recent fall in the price of
Bitcoin. The crypto analyst noted that the decline in Bitcoin’s
price seems to be associated with profit-taking, as investors are
selling their coins to realize some gain. Meanwhile, this is
supported by the aforementioned decline in the percentage of
Bitcoin UTXOs in profit. Nevertheless, it may not be all bad news
for the premier cryptocurrency with the UTXO metric currently at a
multi-month low. Historical data shows that the proportion of BTC
UTXOs in profit being at its current level could be a signal of a
market bottom. The last time the Bitcoin UTXOs in profit slumped to
68.5%, the price of Bitcoin rallied 175% from $26,700 to a new
all-time high of $73,737. While there is no guarantee there will be
a repeat rally from the current point, investors might still want
to pay attention to other relevant on-chain metrics. BTC Price At A
Glance As of this writing, the price of Bitcoin is slightly under
the $54,000 level, reflecting a 4.1% decline in the past 24 hours.
According to data from CoinGecko, the flagship cryptocurrency is
down by more than 9% in the past week. Related Reading: Solana To
$100 Inevitable After This Break? SOL Forms A Triple Bottom
Featured image from iStock, chart from TradingView
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