Crypto Market After UTxO Age Band Price Intersection

The market typically hit its lows when UTxOs age bands from 6 months to 12 months intersected with those from 12 months to 18 months.

Posted by by Munene Kelvin
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  1. The realized price of UTxO from 6 to 12 months has surpassed the realized price of UTxO from 12 to 18 months.
  2. Short-term movements in crypto markets can often be unpredictable and volatile.
  3. The 1-week average price has dropped far below the 200-week average for the first time.

According to a recent post on Twitter by CryptoQuant, it is likely that the lowest floor has been reached because historically, the market price has fallen to its lowest level when comparing the current cycle to the previous two cycles when the realized price of UTxOs between 6 months and 12 months intersects with the realized price of UTxOs between 12 months and 18 months. The intersection between the two age bands has been particularly informative in understanding where the market is heading next.

Currently, we are seeing that the realized price of UTxO from 6 to 12 months has surpassed the realized price of UTxO from 12 to 18 months. This could indicate a growth potential shortly, as it suggests that investors who have held their assets for less than a year are now starting to recognize gains on their investments and may be increasing their positions further.

However, it’s important to note that short-term movements in crypto markets can often be unpredictable and volatile, so investors should still exercise caution when making investment decisions. Despite this, if the current trend continues and the realized prices of both UTxO age bands remain in a positive intersection, this could provide some optimism for the overall crypto market and where it’s headed next.

Yet the market’s 1-week average price has dropped far below the 200-week average for the first time. Hence, a clear break above this significant resistance level is still required before Bitcoin (BTC) can be considered to be in a new bull cycle.

As long as trading activity occurs below this barrier, substantial accumulations may be made. As in 2015 and 2016, the crypto market might expect a period of inertia lasting long enough to achieve sustainable development rather than the frantic pace seen in 2019.

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