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Delphi Digital takes the Bitcoin inventory
A research and consulting company focused on the digital market, Delphi Digital, has recently carried out the inventory of the cryptocurrency market. After conducting their research, they developed a chart to show their results and expected that BTC will reach the minimum in the first quarter of 2019. The announcement was made on social media on January 10th.
The relationship was different from the normal price analysis of the cryptocurrency. He did not reformulate arguments about the fundamental value of BTC. It was determined by the output data of unspent transactions. These data were what the company used to create a price forecast. The report was titled "Bitcoin Holder Analysis Through Cycles" and is a follow-up to their initial report titled "The State of Bitcoin".
By analyzing UTXO data, the company found that there were sales and accumulation models based on when unspent transactions are transferred or when they are inactive. The report states that there has been a steady trend in UTXO age distribution regarding its relationship to price and time. It has shown that there has been a significant relationship between the increase in the number of dormant coins and a decrease in the number of UTXOs when the price of BTC has declined.
When long-term BTC holders notice a quick appreciation of investments, they discharge. This dumping leads to the creation of backpacks. When new capital comes into the market, the first investors to buy will benefit more. Those who will come later will have to buy at higher prices. Part of the report was as follows:
"It is safe to assume that the main selling pressure comes from coin owners who have held up to 3-5 years." During our analysis, we were able to determine that the sales pressure of long-term holders was exploited in significant way leading to a high accumulation.With the timing of previous funds in relation to the different Bitcoin accumulation points, the current UTXO dynamic can be used to determine approximately a date for a possible lower price.
The results provided a small relief to the community of cryptocurrencies. It shows that even if for some months there has been a descending trajectory, things will improve soon. The company has not only predicted that prices will fall in the first quarter of 2019, but also predicts that there will be a rise in prices in April 2019. This does not mean that everyone should invest everything they have in the sector before of April. The data collected during the research are limited. Even if it was not, the cryptocurrency market is unpredictable so it's hard to know what the future holds.
Bitcoin price analysis (BTC)
