Delphi Digital Charts Unspent Bitcoins As It Calls For A Cryptocurrency Market Bottom

bitcoin price


Right after the cryptocurrency market declined significantly against the USD, investors and traders were forced to rethink their positions in the industry. Many of them decided to leave the market entirely while some with strong convictions remained. Taking inventory after a bear trend is not uncommon and this is what Delphi Digital did in its latest research.


Delphi Digital Takes Inventory Of Bitcoin


A research and consulting firm that is focused on the digital market, Delphi Digital, recently took inventory of the cryptocurrency market. After conducting their research, they developed a chart to display their findings and predicted that BTC will reach bottom in the first quarter of 2019. The announcement was made on social media on the 10th of January.


Bitcoin (BTC) Price Today – BTC / USD
Name Price24H (%)
Bitcoin (BTC)
$4,000.24
-0.44%


The report was unlike the regular cryptocurrency price analysis. It didn’t rehash arguments about the fundamental value of BTC. It was determined by the unspent transactions output data. This data was what the firm used to create a price forecast. The report was titled “Bitcoin Holder Analysis Through Cycles” and it is a follow up of their initial report that was titled “The State of Bitcoin.”


Analysing the UTXO data, the firm pinpointed that there has been selling patterns and accumulation based on when these unspent transactions are moved or when they are dormant. The report stated that there has been a consistent trend in the UTXO age distribution regarding how it relates to the price and time. It showed that there has been a significant relationship between the rise in the number of dormant coins and a fall in the number of UTXO as the price of BTC declined.


When long-term holders of BTC notice a rapid appreciation of investment, they dump. This dumping leads to the creation of bag holders. When new capital enters the market, the first investors to buy will benefit the most. Those who come later will have to buy at higher prices. Part of the report was is as follows:


“It safe to assume that the main selling pressure came from coin owners who have held for up to 3-5 years. During our analysis, we were able to determine that the selling pressure from long-term holders was tapped significantly leading to high accumulation. With the timing of the previous bottoms as related to the different Bitcoin accumulation points, the present UTXO dynamics can be used to roughly determine a date for a possible price bottom.


The findings provided a little relief to the cryptocurrency community. It shows that even if there has been a downward trajectory for months now, things will get better soon. The firm didn’t just predict that the prices will bottom out in the first quarter of 2019, it also predicted that there will be price rally in April 2019. This doesn’t mean everyone should invest everything they have in the industry before April. The data collected during the research is limited. Even if it wasn’t, the cryptocurrency market is unpredictable so it’s difficult to know what the future holds.


Bitcoin (BTC) Price Analysis


At the time of writing, BTC was trading at $3,697.53. This means that it is 3.45% lower against the USD. The market capitalization is $64,617,045,318 with a trading volume of $6,194,106,677. The next few days of trading will determine if the price action will change.

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