Bitcoin’s consolidation below $68,000 Bulls have held steady over the $66,000 level of support. The cryptocurrency’s ability to prevent a further correction is more important than the fact that it hasn’t experienced a major push upward. Bitcoin remains on track To end the month of October in a positive mood.
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A crypto analyst highlighted a trend emerging in Bitcoin’s UTXO metric which supports this view. suggests a looming breakout The crypto price has increased.
UTXO in Loss reaches highest ever point
Bitcoin UTXO losses reached a peak in 2024 on the 11th of September, exceeding the last market low in 2023 and COVID-19 in 2020.
This measure, also known as the Unspent Transaction Output or UTXO, refers to how much Bitcoin remains in an unopened Bitcoin wallet following a transaction. When UTXO (Unspent Transaction Output) is measured as a loss, this reflects how many Bitcoin holdings are currently at a lower price than the Bitcoin wallet’s most recent transaction.
Glassnode’s data shows that the amount of UTXO that are in loss has increased dramatically in September, surpassing previous figures. This indicates that a large portion of Bitcoin addresses is underwater. While this might seem to indicate a bearish mood at first, the past has shown that it is not always accurate. shown this isn’t the case.
As pointed out CryptoCon analyst CryptoCon states that the major spikes for UTXO loses don’t always occur right before a bad price movement, but usually at the very end. This trend suggests that the September peak is likely to be reached. was an inflection point Bitcoin price forecasts for the remainder of this year.
What does this mean for Bitcoin price?
The data shows a consistent pattern. When UTXO is in loss reaches extreme levels, Bitcoins’ price often approaches a reversal. During the COVID-19 collapse in March 2020 UTXO was at an all-time low, but then a rally pushed Bitcoin’s price to new highs.
This was the last major spike in the UTXO loss in September 2023. It served as a precursor to the new bull market that began in October 2023. In March 2024 Bitcoin reached a new record-high, proving that spikes of the UTXO loss are a good indicator for positive market momentum.
The September surge in UTXO losses could signal a bottom in the market, and open the door for a rally the rest of the way.
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Interestingly enough, Bitcoin’s price has shown a markedly positive trend since this recent peak in UTXO losses. Bitcoin traded at around $57,000. It has seen a significant rally since then. inching closer to the $70,000 price level.
Bitcoin currently trades at $66,720.
Chart from TradingView, Featured Image from Pexels
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Source: www.newsbtc.com
