After a strong on-chain signal, a cryptocurrency expert said Bitcoin could surge again.
Bitcoin UTXOs Profit at Lowest Level Since 2023 — Why?
CryptoQuant analyst EgyHash posted an intriguing look at Bitcoin’s on-chain prices in a QuickTake. The Bitcoin UTXO (unspent transaction output) metric records the amount of bitcoin left after a transaction.
This proportion of unspent cryptocurrency in profits shows the state of the market. An increase in Bitcoin UTXOs in profits shows that most investors are in the green, which can encourage them to continue investing or push them to take profits. However, a higher proportion of UTXOs in losses indicates that more investors are losing, indicating a bear market.
CryptoQuant researcher reports that Bitcoin UTXO profits have been continuously decreasing to their lowest level since October 2023. According to CryptoQuant, Bitcoin UTXO profits have decreased from 99% in June 2024 to 68.5% in September 2024. This market behavior coincides with the recent decline in Bitcoin price.
The crypto researcher added that investors are selling their coins to profit from the falling Bitcoin price. The drop in Bitcoin UTXO profits confirms this. The UTXO metric is at its lowest level in several months, which may be good for the leading cryptocurrency.
Historical evidence suggests that the current level of profitable BTC UTXOs may indicate a market bottom. The last time Bitcoin UTXO profits fell to 68.5%, Bitcoin rose 175% from $26,700 to a record high of $73,737. Investors may want to monitor other on-chain metrics, although a move higher is unlikely.
BTC Price Overview
Bitcoin is just under $54,000, down 4.1% in 24 hours. According to CoinGecko, the flagship cryptocurrency has fallen nearly 9% in the past week.
#USNonFarmPayrollReport #PowellAtJacksonHole #CryptoMarketMoves $BTC
