Bitcoin’s UTXO in Profit Indicates Potential Market Rebound

Bitcoin’s UTXO (Unspent Transaction Output) profit percentage exhibits significant movements that indicate a potential V-shaped market rebound. Recent analysis suggests that while the price of Bitcoin remains in a consolidation phase, the UTXO in profit percentage is deviating from its previous lows. This trend is catching the attention of market observers, particularly the so-called “accumulation whales,” who tend to respond to market fear with strategic buying.

Time for the accumulation whales to respond

“This is time when accumulation whales are likely to respond to market fear, indicating a potential V-shaped rebound.” – By @mignoletkr

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— CryptoQuant.com (@cryptoquant_com) June 25, 2024

During the last year’s consolidation phase, a similar pattern was observed. Despite the stagnant price action, UTXO’s profit percentage began to rise, signaling underlying strength in the market. This metric reflects the percentage of profitable *BTC* UTXOs and is crucial for understanding market sentiment. A rising UTXO in profit percentage amidst a consolidating price can indicate that more holders are profitable, reducing selling pressure and potentially leading to price stability or even a rebound.

Whales’ Accumulation Response

Historically, accumulation whales have played a pivotal role in stabilizing the market during periods of fear and uncertainty. The current divergence between Bitcoin’s price and the UTXO in profit percentage suggests that these whales may soon enter the market to capitalize on low prices, thus potentially triggering a V-shaped recovery.

The attached image illustrates Bitcoin’s UTXO in profit percentage over time, clearly shows past instances where similar divergences have preceded significant market movements. As the market awaits the next move, all eyes are on these large holders and their potential impact on Bitcoin’s price trajectory.

While Bitcoin remains in a consolidation phase, the rising UTXO in profit percentage suggests underlying strength and a possible market turnaround. Accumulation whales, known for their strategic market interventions, may soon respond to the current market conditions, potentially leading to a V-shaped rebound. As always, market participants are advised to stay informed and consider the broader market indicators before making investment decisions.