- Bitcoin UTXO age bands’ crossover has forecasted three rallies in the past.
- The recent crossover on September 17 suggests another rally in the works for BTC.
- A breakdown of the $25,000 support level will invalidate this bullish thesis.
Bitcoin price currently trades at $26,242 with dampened volatility. But things could change quickly, as indicated by these on-chain metrics that track the behavior of BTC holders.
Also read: Members of US FSC urge SEC Chair Gensler to immediately approve spot Bitcoin ETFs
Bitcoin price needs to hold this key support
Bitcoin price has been malleable to the short-term holder movements. A large spike in profits for short-term holders is almost always met by a correction in BTC. Likewise, a surge in short-term holders purchasing BTC could trigger an uptrend in the pioneer crypto.
UTXO bands are key to monitoring the sentiment of BTC holders for a specific period. In this case, CryptoQuant’s 1-day to 1-week and 1-week to 1-month UTXO holder bands are used. The range mentioned represents addresses that have not moved their holdings for the specified period.
As seen in the chart below, the 1-day to 1-week UTXO band crossing above the 1-week to 1-month UTXO band has triggered a rally in Bitcoin price. The same has been true since the start of 2023.
The first time this bullish crossover occurred was on January 10, which was just before Bitcoin price rallied from $17,300 to nearly $24,000. Similar crossovers were observed on March 17 and June 21.
Currently, Bitcoin price sits above the critical support level at $25,000 and has also produced a UTXO band bullish crossover, which adds credence to the potentially bullish breakout. If BTC were to trigger a rally here, the target would be $30,000 psychological level.
-638313901782281179.png)
BTC/USDT 1-day chart
While this optimistic outlook for Bitcoin price is logical and backed by nearly nine months of historical data, investors need to be cautious. A decisive breakdown of the $25,000 support level on the daily time frame will invalidate this bullish thesis for BTC.
In such a case, Bitcoin price could crash 13% to next key support level at $21,637.
Also read: Bitcoin Ordinals creator proposes “Runes”, a replacement for BRC-20 standard
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.