Bitcoin BTC/USD — the world's first cryptocurrency — is seeing fewer balances currently in profit, which is a counterintuitively bullish sign.
What Happened: The seven-day moving average of Bitcoin's number of unspent transaction outputs (UTXOs) in profit just reached an 18-month low of 103.3 million, according to a Monday tweet by Glassnode Alerts — the Twitter profile sharing on-chain trends of blockchain data firm Glassnode.
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This means that only 103.3 million transaction outputs (coins moved at once) are now worth more than the last time they were involved in a transaction. This is a bullish sign because all of those who acquired Bitcoin by having it transferred onto their wallet only to see it lose value are less likely to sell than if their investment or trade was in profit.
Traders and investors are familiar with how market participants are much more prone to participate in profit-taking than cutting their losses and selling at a loss.
The record follows Saturday reports that Bitcoin is seeing its whales (cryptospeak for large holders) come to life, with mean transaction volume on its blockchain reaching a seven-month high of 25.66 BTC — equivalent to well over $923,000 at the time.
Furthermore, market data indicates that Bitcoin is refusing to realign its price with the stock-to-flow (S2F) model and stays undervalued according to the metric just as it reaches halfway to the next halving that will cut its inflation rate once again — now standing at just 35.6% of the price estimated by S2F.
Price Action: At the time of publication, Bitcoin was trading at $32,854.26, down 4.58% in the past 24 hours.
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