Bitcoin Flashes On-Chain Signal That Caused 175% Rally Last Time

After a strong on-chain signal, a crypto expert said Bitcoin may climb again.

Bitcoin UTXOs Profiting At Lowest Level Since 2023—Why?
EgyHash, a CryptoQuant analyst, posted some intriguing on-chain Bitcoin pricing insight in a QuickTake. The Bitcoin UTXO (unspent transaction output) measure records the amount of bitcoin left after a transaction.

This proportion of unspent cryptocurrency in profit shows the market's state. An rise in Bitcoin UTXOs in profit shows that most investors are in the green, which may encourage them to keep investing or pressure them to take profit. However, a bigger proportion of UTXOs in loss indicates that more investors are losing, indicating a bearish market.

The CryptoQuant researcher reports that Bitcoin UTXO profits have continuously decreased to their lowest level since October 2023. According to CryptoQuant, Bitcoin UTXOs in profit dropped from 99% in June 2024 to 68.5% in September 2024. This market behavior coincides with Bitcoin's recent price drop.

The crypto researcher added that investors are selling their coins to benefit from Bitcoin's price decrease. The drop in Bitcoin UTXO profits supports this. The UTXO measure is at a multi-month low, which may be good for the leading cryptocurrency.

Historical evidence suggests that the present level of profitable BTC UTXOs may indicate a market bottom. The last time Bitcoin UTXOs in profit fell to 68.5%, Bitcoin rose 175% from $26,700 to a record $73,737. Investors may wish to monitor other on-chain measures even if a rise is unlikely.


BTC Price Overview

Bitcoin is just under $54,000, down 4.1% in 24 hours. According to CoinGecko, the flagship cryptocurrency is down almost 9% in the previous week.

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