Bitcoin Approaching This Bullish Crossover, Relief Finally Ahead?


On-chain data shows that Bitcoin is nearing a crossover that has historically proven to be bullish for the price of the crypto.

Bitcoin Short and Long Term UTXO Age Band Focus Crossover

As noted by an analyst in a CryptoQuant mailBTC has generally seen a significant rise following the formation of such a cross.

The relevant indicator here is the “UTXO age bands”, which tells us the percentage of the Bitcoin supply that each pool has at the moment.

The different Age Bands denote the period of time between which each UTXO (or simply, each coin) that fell in that band last moved.

For example, the UTXO age bracket of 6 to 12 months includes the part of the BTC supply that has not been transferred for six to twelve months.

In the context of the current theme, the age ranges of interest are the groups from 1 to 3 years and from 2 to 3 years. The former of these represents short-term UTXOs (since they haven’t aged very much yet), while the latter denotes long-term UTXOs.

Now, here’s a graph showing the trend in these two Bitcoin UTXO age bands over the past few years:

Looks like the two metrics have been approaching each other in recent days | Source: CryptoQuant

As you can see in the chart above, the 1-3 month Bitcoin UTXO age bracket has been declining recently, while the 2-3 year age group has seen an increase.

If both indicators continue on their current trajectory, they will soon meet and cross over, where the long-term age band will surpass the short-term one.

The quant has also highlighted the trends that followed in the BTC price when such a pattern had previously formed over the past few years.

It seems that every time this type of crossover has occurred for the crypto, the price has seen a significant increase over the long term.

The importance of this crossover is that it represents a shift in supply from short-term buyers (who are often weak hands) to long term holders (strong hands).

It now remains to be seen if the Bitcoin UTXO age bands will continue and complete the crossover, and if it will now also follow the same trend as in history.

Bitcoin price

At the time of writing, bitcoin price It floats around $16.5k, down 1% in the past week. Over the last month, the cryptocurrency has lost 13% in value.

Bitcoin price chart

The price of the coin seems to have recovered back above $16.5k during the last 24 hours | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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