Bitcoin today broke through $21k, a strong surge that was prompted by on-chain data suggesting signs of accumulation.
Bitcoin UTXO Value bands Show that Multiple Groups Purchased Recently
CryptoQuant analyst points out that the value bands, which made profit 10 days ago, are now growing again.
The relevant indicator here is the “UTXO value bands,” which tells us what percentage of the total Bitcoin supply is held by which groups.
This table shows the value ranges or groups. They are divided by the number coins that have been used in Unspent Transaction Outputs, or the total amount of money currently in each wallet.
The 1k-10k BTC price band, for example, includes wallets currently holding 1k-10k BTC.
If a value band is showing an upward trend, that means wallets within the range will be increasing.
The relevant values bands in the context of this discussion are the 0.1-1 BTC and 1-10 BTC cohorts.
Below is a chart showing the trends in the UTXO values band percentages for each group.
It seems like these metrics are going up over the past few days. Source: CryptoQuant| Source: CryptoQuant
You can see that all three values began dropping when Bitcoin prices first rose.
Investors with these amounts began to sell when a profitable opportunity presented itself.
The metrics had reached their lowest point at the top of the market, followed by a trend that was sideways.
The percentage of Bitcoin supply within these UTXO values bands has increased over the last few days.
Investors believe that prices will rise further because of this market-wide accumulation.
The crypto price has risen significantly in the wake of this buy spree and is now above $21k.
At the time of writing, Bitcoin’s price floats around $21.1k, up 3% in the last week. The crypto gained 8.8% over the last month.
The chart below shows how the currency’s price has changed over the past five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Sandra Seitamaa's featured image on Unsplash.com. Charts from TradingView.com and CryptoQuant.com.