Bitcoin younger UTXOs rise suggest a potential top
The post Bitcoin younger UTXOs rise suggest a potential top appeared on BitcoinEthereumNews.com.
BTC has declined by 2.59% over the past week. Bitcoin’s younger UTXOs rise suggested a potential top. Since starting a U.S. market-led bull run on the 5th of November 2024, Bitcoin [BTC] has experienced strong upward momentum. Over this period, BTC has reached multiple all-time highs (ATHs) with minor corrections along the way. With the bull market extending to nearly three months, analysts have shared concerns over a potential top. CryptoQuant analysts suggest that Bitcoin is at risk of a local top, citing increased speculation as younger age bands dominate. Is Bitcoin’s top near? According to CryptoQuant, Bitcoin’s previous cycle peaks have experienced patterns of younger UTXOs (1d-3m) dominating at the tops. Source: CryptoQuant Historically, high levels of recently moved coins coincide with cycle tops, notably in 2013, 2017, and 2021. During the current cycle, the market has seen a surge in younger UTXOs, suggesting growing participation from newer market entrants. However, this cycle has not yet reached the extreme levels seen in previous peaks. When a large percentage of Bitcoin is held in younger UTXOs, it signals increased speculation and a higher risk of market tops. Therefore, if this trend continues, we could see a final leg up before distribution begins. However, if long-term holders maintain their positions, Bitcoin’s rally may continue. BTC was entering a phase of increased market activity, but the proportion of young UTXOs is not yet at historical peak levels. This indicates that Bitcoin still has room for further upside, though a potential top is not far-fetched. What BTC’s charts suggest While the rise of younger UTXOs may signal a potential top for Bitcoin, AMBCrypto’s analysis pointed out that the market top is not yet. Source: CryptoQuant For example, Bitcoin’s average dormancy has declined from 116.40 to 17.1. This decline suggests that long-term holders…
Filed under: News - @ January 29, 2025 4:24 pm