- A rise in the UTXO in Profit may lead to a price correction.
- The STH-SOPR signals that it’s time for short-term investors to exit the market.
Bitcoin’s [BTC] good show over the last year placed many holders who suffered the bear market of 2022 in profits. However, the current state of the Unspent Transactions Output (UTXO) in Profit might have put BTC’s price in danger, AMBCrypto discovered.
The UTXO in Profit represents the percentage of coins whose value was lower when it was created compared to the current value. On the other hand, UTXOs in Loss are the coins with a lower value than it was when it was created.
For the uninformed, these metrics can be crucial in identifying market tops and bottoms. At press time, CryptoQuant data showed that the UTXO in Profit had increased to 88.63%.
More gains mean more downside
In past cycles, when the UTXO in Profit hits 95%, the Bitcoin price corrects. So, if the coin price rises and places more UTXOs in gains, a notable drawdown might occur. This notion was also corroborated by SimonaD, an on-chain analyst.
SimonaD, who published her analysis on CryptoQuant, noted that:
“The last time the market had the metric in a high state indicating over 95% of UTXOs being in profit, it was during the 2021 top bull market. This means that we should pay close attention to this area if it will be touched and crossed in the next period.”<
Go to Source to See Full Article
Author: Victor Olanrewaju
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
