Bitcoin has today broken past $21k in a sharp surge as on-chain data suggests signs of accumulation from the investors.
Bitcoin UTXO Value Bands Show Multiple Groups Have Been Buying Recently
As pointed out by an analyst in a CryptoQuant post, the value bands who took profit around ten days ago are now accumulating again.
The relevant indicator here is the “UTXO value bands,” which tells us what percentage of the total Bitcoin supply is held by which groups.
The value bands or groups here are divided based on the number of coins in each Unspent Transaction Output (UTXO), or simply, the amount currently held in each wallet.
For example, the 1k-10k BTC value band includes all wallets that are currently holding between 1k and 10k BTC.
When any value band shows an uptrend, it means the number of wallets in that specific range are going up.
In context of the current discussion, the relevant value bands are the 0.1-1 BTC, 1-10 BTC, and 10-100 BTC cohorts.
Here is a chart that shows the trend in the UTXO value band percentages for each of these groups:
Looks like all these metrics have been going up in the last couple of days | Source: CryptoQuant
As you can see in the above graph, when the price of Bitcoin first started to rally up, all three of these value bands started dropping down.
This means that investors with wallet amounts in these ranges started to dump as a profit-taking opportunity arose.
By the time the price peaked, these metrics hit a low, and then followed up with trending sideways (along with the price).
In the last couple of days, however, the percentage of the Bitcoin supply in these UTXO value bands has once again started to move up.
This means that there has been some market-wide accumulation going on above the $20k level, showing that investors have conviction the price will increase further.
And indeed, following this buying spree, the crypto has sharply shot up in the past day, breaking above the $21k level again.
At the time of writing, Bitcoin’s price floats around $21.1k, up 3% in the last week. Over the past month, the crypto has gained 8% in value.
Below is a chart that shows the trend in the price of the coin over the last five days.
The value of the crypto seems to have seen some very sharp uptrend in the last twenty-four hours | Source: BTCUSD on TradingView
Featured image from Sandra Seitamaa on Unsplash.com, charts from TradingView.com, CryptoQuant.com