Bitcoin (BTC) Close to a Cycle Bottom Based on This Metric, According to Quant Analyst

One metric indicates Bitcoin (BTC) is getting close to the end of its “cyclic bottom,” according to Ki Young Ju, chief executive of on-chain insights platform CryptoQuant.

Unspent transaction output (UTXO) age bands are “a set of all active supplies that were last moved within a specified age band,” and they track the trading behavior of long-term and short-term holders, according to CryptoQuant.

Explains Ju,

“Now UTXOs over six months old take 62% of the realized cap. In the 2020 March great sell-off, this indicator reached 62% as well.”

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Ki Young Ju/Twitter

According to Ju, the on-chain metric suggests that Bitcoin is “getting close to a cycle bottom.”

The CryptoQuant CEO also notes institutions that bought Bitcoin in 2020 have mostly kept their BTC stacks dormant.

“For most cases, the same amount of BTC is still in the (custodian) wallets, which flowed out from Coinbase for highly likely institutional purchases in December 2020. Their entry price is $23,000.”

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Ki Young Ju/Twitter

Ju says it’s “pretty obvious” that Bitcoin is in an accumulation phase.

“Institutions that drove the 2021 bull-run bought in this $25,000-30,000 range too.”

The CEO also recently noted that retail investors are leaving the crypto market while institutional investors continue to accumulate.

“Not bad for accumulating Bitcoin with institutions, but still worried about overall volume which is significantly decreased compared to last year.”

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Source: Ki Young Ju/Twitter

At time of writing, Bitcoin is trading for $31,563, up nearly 15% from its May 2022 low of $26,973.

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