At the On-Chain level, we typically classify participants in the Bitcoin blockchain based on the time they have held their Bitcoin. This classification is known as age bands, and it allows us to group investors and study their behavior in greater detail. Using this approach, we have the Bitcoin: Realized Price - UTXO Age Bands metric, which categorizes UTXOs (Unspent Transaction Outputs) based on the time they have remained unspent, providing a detailed view of the behavior of different groups of holders.
This method allows us to identify smart money and how it invests, as well as differentiate between short-term and long-term investors (STH - Short Term Holders and LTH - Long Term Holders). It also enables us to assess the PNL (Profit and Loss) of each band, clearly identifying which groups are in unrealized losses or gains.
With this approach, we can break down the age bands into groups like 0 to 1 day, 1 day to 1 week, 1 week to 1 month, 1 month to 3 months, 3 months to 6 months...
Interestingly, most of the time, depending on the timing of Bitcoin purchases and its price behavior, some bands will be in profit while others will be in loss. However, as Bitcoin has been steadily increasing its Realized Cap in recent weeks, prices have risen as expected, reaching a point where all age bands of Bitcoin are now completely in profit, meaning 100% are in the green once again.
This milestone occurred today, when Bitcoin surpassed ~$98,138 at 02:15 UTH, as the only remaining age band with unrealized losses, the 3 to 6 months band, had a Realized Price of $98,102. Since that moment, the Bitcoin Blockchain has returned to a total profit once again.
see chart
In conclusion, after several weeks of quiet accumulation in its Realized Cap, continuous buying from ETFs, whales, and other major market players, everything points to the likelihood of a new ATH (All-Time High) for the blockchain in the near future, continuing its cycle with new price peaks. Cheers to Bitcoin! đ„
Written by Carmelo_AlemĂĄn
