The percentage of Bitcoin unspent transaction outputs (UTXOs) in profit has dropped to its lowest level this year, stirring discussions in the crypto community about the potential implications for Bitcoin’s price movement.
According to CryptoQuant data, only 68.5% of Bitcoin UTXOs are currently in profit, a significant decline that mirrors similar past market conditions. Historically, the last time BTC’s UTXOs in profit hit this level, it was a precursor to a dramatic price surge.
Bitcoin UTXOs in Profit Drop to Lowest Level This Year
“The last time the percentage of Bitcoin UTXOs in profit dropped to 68.5%, Bitcoin's price saw a significant surge of 273%, climbing from $26,700 to $73,000 and achieving a new all-time high.” – @cryptoquant_official pic.twitter.com/kmXCpvKqeD
— Cam – Crypto DeGen (@CryptoNews_eth) September 6, 2024
During that period, Bitcoin’s price catapulted by 273%, moving from $26,700 to an unprecedented $73,000, setting a new all-time high. This historical pattern has led to speculation among market analysts and investors about the possibility of a similar upward trajectory in the near future.
However, this forecast starkly contrasts with the current market status, where Bitcoin has struggled to find support as it navigates a downtrend.
BTC Price Action
Upon hitting the $65.05K mark on August 23, the BTC token exhibited heightened bearish sentiment, pulling its price down by over 16% to its current level, where it found support. As of press time, BTC exchanged hands at $54,212. This marks a 3.41% dip compared to its previous day’s price.
Technical indicators further support this move, with the MACD indicator suggesting that the bearish mood will continue in the near term. Likewise, the Chaikin money flow index, registered below the zero line at 0.12, indicates that selling pressure is still dominant in the market.
Amid this bearish sentiment, the asset’s intraday market cap shrank to $1.068 trillion. Wearing the investor’s hat, the 24-hour trading volume, on the other hand, tells a different story. It reached $39.209 billion, with an increase of 27.88%. This hints towards increased trading activities in the BTC markets despite the negative sentiment.
Is a New All-Time High Possible?
According to data from CoinGlass, the OI-Weighted Funding rate is trending in the positive region, reflecting a 0.0028% increase in the last 24 hours. This shows that more long-position holders are willing to pay a premium to short ones to maintain their positions.
Given these market conditions, Bitcoin is anticipated to find support around the $53.591K zone. Such a scenario could signal a reversal in the current downtrend and pave the way toward the $59,846 resistance. A break above this threshold could push BTC to its next barrier, around $65.05K, potentially challenging its all-time high of $73.8K.
On the other hand, should the $53.591K fail to hold, BTC might witness its price fall to lower lows and potentially retrace toward the $50.5K and $49.352K support levels before attempting another bull run.
Also Read: Trapped in a Bear Channel, Will Cardano Hold $0.30 For Recovery?