Bitcoin has now surpassed $21,000 in a strong increase as on-chain data indicates investor accumulation.
According to a post on CryptoQuant by a market expert, value bands that took profits approximately ten days ago are once again accumulating.
The crucial indicator is the “UTXO value bands,” which tell us what proportion of the total Bitcoin supply each group has.
The value bands or groupings above are split based on the number of coins in each Unspent Transaction Output (UTXO), or simply the amount stored in each wallet at now.
For instance, the 1,000 to 10,000 BTC value range contains all wallets that presently have between 1,000 and 10,000 BTC.
When a value band has an upward trend, the number of wallets inside that range is increasing. As a profit-taking opportunity arrived, investors with wallet balances in these areas began selling.
By the time the price crested, these measurements had reached their lowest point and were thereafter heading sideways (along with the price).
In the recent few days, however, the proportion of Bitcoin supply in these UTXO value ranges has begun to rise again.
This indicates that there has been a market-wide accumulation of over $20,000, indicating that investors believe the price will continue to rise.
And the fact, as a result of this purchasing rush, the cryptocurrency has surged substantially over the last day, surpassing $21,000 once again.