Journalist
Posted:
- Bitcoin may not experience another major downside as some of the UTXOs failed to sell.
- The SSR remained low, indicating a reluctance to buy Bitcoin above $25,000.
Have the past few days Bitcoins [BTC] The move was sideways, with investors unsure about the next direction of the king coin. This sentiment could be related to the events last week when Grayscale partially won against the US SEC. And in no time, the regulatory body decided to postpone its mock Bitcoin ETF decision.
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However, there is a group that seemed unfazed by current events and may be sticking to HODLing. According to on-chain analyst Tarekonchain, these were the UTXO Age Bands from 6-12 months.
Profits are converted into loyalty
UTXO age groups are a collection of all active stocks that were last moved within a certain age group. The value of UTXO age groups matching the age range represents the total value of existing UTXOs that were last moved in original value within the specified time period.
The analyst who published his take on CryptoQuant noted that this cohort is unwilling to sell their holdings. This is because almost no part of this group send their assets to exchanges.
Source: CryptoQuant
At the time of writing, the 6-12 UTXO Age Bands were still in profit and reluctant to sell due to their average purchase price of $19,000. This indicated that most made gains of at least 16%.
Compared to other groups, such as the 1-3 month age groups and the 12-18 month age groups, the 6-12 year group seems to be the only one to gain.
The chart below shows that other than the 6-12 UTXO Age Bands have an average purchase price between $26,000 and $29,000. Tarekonchain explained:
“Using the UTXO Age Bands indicator, we see that their average entry price is around $19,100 per Bitcoin.”
Bulls are not everywhere
As a group that has a huge influence on the market direction with a solid presence, the behavior of the 6-12 UTXO Age Bands is worth monitoring. So as it stands, so is this cohort optimistic on BTC. And if sentiment remains the same, BTC could stabilize and avoid a further downtrend.
Source: CryptoQuant
But does the broader market think BTC’s current value represents an opportunity? To determine this, the Stablecoin Supply Ratio (SSR) comes into play.
How many Worth 1,10,100 BTCs todayyou?
The Stablecoin Supply Ratio (SSR) is the ratio between the market capitalization of Bitcoins and the market capitalization of stablecoins, expressed in BTC.
When the SSR increases, it means that the stablecoin supply has more buying power to buy BTC. But at the time of writing, the SSR had dropped to 4.14, meaning there was hardly any willingness to accumulate BTC at this value.
Source: Glassnode