CryptoQuant Researchers Predict BTC Price Breakout Upwards
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Johny Smith
2024/09/17
3 mins read
According to the UTXO Block P/L Count Ratio model from CryptoQuant, the current situation on the Bitcoin market is characterized by a decrease in the number of UTXOs in profit and an increase in the number of UTXOs in loss. This refers to the output data of Bitcoin transactions that have not been spent at the current moment in time. This may be a sign of the imminent growth of the digital coin’s quotes.
According to analysts, this indicates growing losses among small investors, which is causing panic selling. The decrease in the number of profitable UTXOs indicates a fall in the BCT price and increases stress among traders. Thus, many of them decide to sell assets at lower prices.
According to experts, this phenomenon is known as a “patience test.” It pushes the market to greater pressure from below. In turn, the increase in the number of loss-making UTXOs may indicate the beginning of accumulation of large holders who use the moment to buy coins at a reduced price.
“An interesting historical aspect: periods when the number of unprofitable UTXOs increased, as a rule, preceded the growth of the BTC price. This is due to the fact that after panic selling, the market usually stabilizes, and buyers begin to accumulate assets, which creates the preconditions for an increase in quotes. It should be noted that everything is currently in a state of uncertainty, and investors are advised to exercise caution, especially given the current macroeconomic conditions,” the experts emphasized.
Despite the current negative trends, similar cycles have previously led to recovery and even new growth in the Bitcoin rate. This means that investors who are patient and strategic will be able to benefit from the current situation. Current market movements require careful monitoring, especially in the context of the behavior of large investors, who can significantly influence further developments.
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