Use case of UTXOs in Profit  

Use-case-of-UTXOs-in-Profit

The percentage of Bitcoin UTXOs (Unspent Transaction Outputs) in Profit has reached 79,53% currently. 

How can we use this on-chain metric?
Historically, we can notice that when the metric reached about 87% of number of holders in profit, the level acted as resistance or as support after it was broke. Usually, a high percentage of UTXOs in profit it may suggest that we have a risk of sell-off in the next period. When it acted as resistance, we had a price pullback. Conversely, when it acted as support, price kept running higher before we had a sell-off. 

Taking in consideration the current UTXOs in Profit, holders may decide either to hold or sell, depending on their market outlook. 

This on-chain metric is helpful in highlighting a measure of the health of the Bitcoin market and of the percentage of UTXOs in profit. We can use it in correlation to other on-chain metrics such as NUPL (Net Unrealized Profit/Loss) for a better understanding of market perspective.