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Bitcoin’s net income is $68,000 extended throughout the week, with bulls holding above the $66,000 support level. Although the cryptocurrency has not seen a significant push, its ability to avoid a deep correction means that Bitcoin is always on the move to end October on a bullish note.
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In support of this view, the crypto analyst highlighted the trend from Bitcoin’s UTXO metric, which suggests an impending outbreak for the price of crypto.
UTXO in Lost Reaches Highest Point Ever
The value of Bitcoin UTXO in loss has just reached a new peak on September 11, 2024, surpassing levels last seen during the 2020 COVID-19 crash and the September 2023 market downturn.
This metric, known as Unspent Transaction Output (UTXO), refers to the amount of Bitcoin that remains unspent in a Bitcoin wallet after a transaction. When UTXO is measured at a loss, it shows the amount of Bitcoin holds that can be sold at a loss now compared to the last price from the Bitcoin wallet.
According to Glassnode data, the amount of UTXO in circulation increased significantly in September to surpass previous numbers, indicating that a large proportion of active Bitcoin addresses are underwater. However, although this may seem to indicate bearish sentiment at first glance, history has it it has been shown that this is not the case.
As shown by a crypto-CryptoCon analyst, big spikes in the loss of UTXO do not come before the negative price action, but usually come at the end of it. Keeping this trend in mind, a new peak in September is very likely it was a turning point in Bitcoin price action until the end of the year.
What Does This Mean for Bitcoin Price?
Past data reveals a consistent pattern: when UTXO in losses reaches extreme highs, the price of Bitcoin is usually close to a reversal. For example, during the COVID-19 crash in March 2020, UTXO’s losses increased dramatically, followed by a strong rally that led Bitcoin to new all-time highs in the following months.
The last time UTXO in its losses increased significantly in September 2023, it served as a precursor to the latest bull market cycle that began in October 2023. This run culminated in a new Bitcoin high in March 2024, effectively showing the spikes. on UTXO in losses as a sign of positive market momentum.
If history were to repeat itself, the September spike in UTXO loss numbers could also signal a market decline, setting the stage for a rally within the year.
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Interestingly, Bitcoin’s price action has been remarkably positive since this new UTXO peak in losses. At the time, Bitcoin was trading around $57,000. Since then, there has been a great rally, inching closer $70,000 price point.
At the time of writing, Bitcoin is trading at $66,720.
Featured image from Pexels, chart from TradingView
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