Journalist
Posted:
- Bitcoin may not face another major downside as a section of the UTXOs were not selling.
- The SSR remained low, denoting a reluctance to buy Bitcoin above $25,000.
Over the last few days, Bitcoin’s [BTC] movement has been sideways, with investors unsure about the king coin’s next direction. This sentiment could be linked to the happenings over the past week when Grayscale won partially over the U.S. SEC. And in no time, the regulatory body decided to delay its spot Bitcoin ETF decision.
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However, there is a group that seemed unfazed by the current happenings and might be sticking to HODLing. According to on-chain analyst Tarekonchain, this was the 6-12 month UTXO Age Bands.
Gains turn into loyalty
UTXO Age Bands is a set of all active supplies that were last moved within a specified age band. UTXO Age Bands’ value that fit according to the age range represents the total value of UTXOs in existence, that were last moved within the denoted time period in native value.
The analyst who published his opinion on CryptoQuant noted that this cohort is unwilling to sell their holdings. This is because almost no part of this group is sending their assets into exchanges.
Source: CryptoQuant
At press time, the 6-12 UTXO Age Bands were still in profit and reluctant to sell because of their average buying price of $19,000. This indicated that most were in at least 16% profit.
When compared with other groups like the 1-3 months Age Bands and 12-18 months Age Bands, the 6-12 group seems to be the only one in gains.
From the chart shared below, others other than the 6-12 UTXO Age Bands have an average buying price between $26,000 and $29,000. Tarekonchain explained,
“Using UTXO Age Bands indicator, we find that their average entry price is at approximately $19,100 per Bitcoin.”
Bulls are not everywhere
As a group that has a massive impact on the market direction with a solid presence, the 6-12 UTXO Age Bands’ behavior is worth monitoring. So, as it stands, this cohort is bullish on BTC. And if the sentiment stays the same, BTC could stabilize and evade further downside.
Source: CryptoQuant
But does the broader market think that BTC’s current value is an opportunity? To determine this, the Stablecoin Supply Ratio (SSR) comes into play.
How much are 1,10,100 BTCs worth today?
The Stablecoin Supply Ratio (SSR) is the ratio between Bitcoins market cap and the stablecoin market cap denoted in BTC.
When the SSR increases, it means the stablecoin supply has more buying power to purchase BTC. But at press time, the SSR was down to 4.14, meaning that there was hardly any willingness to accumulate BTC at this value.
Source: Glassnode
