UTXO age bands is an analysis technique used on Bitcoin and other virtual currency networks that classifies how long unused transaction output (UTXO) is retained.
It is more natural to assume that the player is protecting (and conversely has selling pressure).
The first touch is more likely to hold the price = rebound. However, as with liquidity, if the price has been touched many times, that price area is likely to break. If the price breaks the UTXO value bands, it is proof that players in that period have let go (or bought against). This is even more so in the longer term.
The caveat is that the finer the period, the more arbitrary = bias the analysis is likely to be. You will need to analyse separately what events took place during this period and whether the player bought or sold.
Written by Crypto_Lion
