This article was additionally published by Coinmotion, the leading digital asset exchange in Nordics.
Summary
- Construing UTXO age distribution allows for pinpointing crucial bitcoin market cycles.
- By historical data, multiple key UTXO bands are correlated with BTCUSD price movements.
- Most recent early 2020 UTXO and price data shows distinct re-accumulation.
- Address sizes between 0,01 and 1 BTC indicate escalating accumulation in retail segment.
- Institutional investors, i.a. Renaissance Technologies LLC, are entering the industry.
Forewords
Unspent output from bitcoin transactions, or UTXO, offers notable possibilities for analysing the cryptocurrency market. Inside the bitcoin blockchain, every transaction creates a new UTXO, and the certain age of UTXO shows the block that the transaction was firstly included in. UTXO data can be utilized to track buying, and selling patterns in the previous, current, and upcoming market cycles.
Recent data by Glassnode shows majority of UTXOs being in profit, despite the early March BTCUSD meltdown. Over mid-February >75 percent of UTXOs were estimated to be in profit.
