Description:
The chart shows two different realized prices:
* 1d - 1w UTXO Age Band (Pink Line): This represents the realized price of Bitcoin
UTXOs that have last moved between 1 day and 1 week ago.
* 1w - 1m UTXO Age Band (Red Line):** This represents the realized
price of Bitcoin UTXOs that have last moved between 1 week and 1
month ago.
Significance:
* Realized Price by UTXO Age Bands: This helps to understand the
cost basis of Bitcoins held by different holder cohorts.
* Short-Term Holders (1d - 1w): Reflects recent buying activity and
can indicate where new market entrants or short-term traders are
positioned.
* Medium-Term Holders (1w - 1m):** Shows the average cost basis
for those who have held Bitcoin slightly longer, providing insights
into their profitability and potential sell pressures.
Key Observations and Interpretation:
* Green Boxes: These highlight instances where the market price
crosses above or below the realized price bands.
* Crossing Above Realized Price:When the market price crosses
above the realized price, it suggests that recent buyers are now in
profit. This can lead to further buying pressure as confidence
increases.
* Crossing Below Realized Price: When the market price drops below
the realized price, recent buyers are at a loss. This can lead to
selling pressure as holders might want to cut their losses.
Current Market Insights:
* Current Market Price: As of the latest data point, the market price is
around $71,133.
* 1d - 1w Realized Price: $68,814.68
* 1w - 1m Realized Price: $66,836.89
Market Sentiment:
The market price is above both realized price bands, indicating that both recent short-term and medium-term holders are currently in profit.
Written by Amr Taha
