New investors may hold the key to Bitcoin’s next major breakout. Recently, the decline in unspent transaction outputs (UTXOs) under six months has halted and leveled off. Currently, only 8.6% of investors are at a loss at Bitcoin’s present price, according to CryptoQuant.
Positive Market Sentiment Attracts New Bitcoin Investors
In the past, when the scarcity of UTXOs under six months in circulation stopped, the price of Bitcoin went up tremendously. During such periods, the observed share of investors in the loss zone is almost equal to zero. This trend shows that the attitude of investors can have a huge impact on the price of Bitcoin significantly.
The Bitcoin market needs to be positive for it to continue its growth as has been depicted in the following figure. Such sentiment is expressed in the increase in new investors to the market most of the time. Normally, these new investors join the market at the beginning of an optimism phase. However, this could be followed by an enormous increase in investment when Bitcoin hits a fresh high again.
In this case, the current price of Bitcoin can be regarded as an attempt to break through the level. The decline of the UTXOs under six months indicates that the market is maturing. This stabilization could attract new investors who are searching for an opportunity to invest. As more investors comes into the market, the chances of getting a much higher price also rises.
Investor Sentiment Could Spark Bitcoin Breakout
The interaction between new entrants and the ever-changing market emotions remains the key to Bitcoin’s growth. With the optimism, there may be an inflow of more funds to invest in the market thereby pushing up the prices. Market analysts are paying close attention to these trends for they may be a harbinger of the next major direction in the price of Bitcoin.
As Bitcoin stays at this crucial price level, it will be new entrants who will determine the way forward. This willingness can build the steam that is required for a breakout, as per CryptoQuant data. As the market changes, the next few weeks may be decisive for Bitcoin. Market participants are expecting that just like in the past, there will be a new high when it comes to price of Bitcoin.
Source: https://blockchainreporter.net/bitcoin-price-poised-for-breakout-amid-utxo-stabilization/