Bitcoin price prediction as 80% of BTC holders are in profit
Around 80% of Bitcoin (BTC) holders are currently in a state of profit, increasing the risk of a sell-off for the flagship decentralized finance asset. This is based on the analysis by SimonaD, a member of the cryptocurrency analytics platform CryptoQuant. The percentage of Bitcoin unspent transaction outputs (UTXOs) in profit has reached 79.53%, indicating a potential heightened risk of a sell-off. UTXO refers to the amount of a crypto asset that remains after every transaction on a blockchain, similar to the change received after a purchase. When the UTXO percentage reached about 87% in the past, it acted as resistance or support for Bitcoin’s price. If it reaches 87% again, the price could potentially pull back to $20,000. However, if it breaks through the resistance level, it could rise to $30,000 or higher. While the UTXO percentage is a useful indicator, it is recommended to use a variety of blockchain metrics along with technical and fundamental analysis to predict Bitcoin’s price.
Bitcoin price analysis:
– Bitcoin is currently changing hands at $29,140.
– It has experienced a decline of 0.88% in the last 24 hours, a 2.27% loss in the previous seven days, and a drop of 3.80% over the last month.
Closing thoughts:
While the high percentage of Bitcoin holders in profit suggests a potential sell-off risk, it is important to consider other factors and indicators when predicting Bitcoin’s price. Utilizing a combination of blockchain metrics, technical analysis, and fundamental analysis can provide a more comprehensive understanding of the market. It is important to remember that investing in cryptocurrency is speculative and carries risks.
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