The UTXO Count Age Bands indicator shows the number of UTXOs sorted by holding period.
For easy understanding, rainbow colors were set in order from 1w-1m to 1m / 3m / 6m / 12m / 18m / 24m. The establishment period starts from January of this year (2023). Here's what we can learn from this:
i) 18m-24m UTXO🟣 has been showing a very slight rise since June without any major changes.
ii) During the same period, 12m-18m UTXO🔵 showed a moderate decline. This means that they were classified as '18m-24m' over time, and at the same time, the number of UTXOs from '6m-12m' to '12m-18m' did not increase. In other words, investors who held BTC for 6 months to 1 year did not hold it longer and handed over (selling) the quantity to other investors.
iii) 3m-6m UTXO🟡 is also a group of short-term holders (STH), which have been increasing rapidly since July. Their Realized Price acts as the break-even point and is expected to act as a strong resistance in the market.
iv) 1m-3m UTXO🟠 also showed a significant increase. Considering that 1w-1m UTXO🔴 has been converted to more than 1 month and continues to trend upward, it appears that investors corresponding to '1w-1m' are absorbing the volume of long-term holders (12m~).
🔔Excluding investors who have been holding for the long term since 1.5 years (12m) + HODLers, investors who entered the market over the past year are believed to have a stronger tendency to buy and sell in the short term.
🎯In the end, the cost-basis (realized price) of short-term holders (STH) will act as a strong resistance level.
Written by Yonsei_dent
