Investing in cryptocurrencies or even stocks and bonds follows an unstated rule that the best time to buy and accumulate is when its value is considerably low. The lower it is, the better the chance to buy, in anticipation of a price increase.
Bitcoin, for example, has had a considerably low price for quite a while, only recently rising above the $4000 mark. This might be the reason why indicators are currently showing that people might be accumulating the crypto a lot more than they used to.
Bitcoin’s Unspent Transaction Outputs
The Bitcoin blockchain operates specifically using the Unspent Transaction Outputs (UTXO) model. This is easily described as an output of a blockchain transaction that is unspent. When a transaction happens, the inputs on a blockchain are deleted and outputs are generated as UTXOs.
When an output is unspent, it is then used as input for a new transaction. Consequently, If UTXO levels are high, it could mean that more of the crypto is being accrued.
UTXO levels around late 2017 through to the beginning of 2018 were reported to have risen up to 67 million. This figure fell quite steeply, shortly after the high rise because a lot of people began to dump their assets.
However, a mid-2018 drift began and the trend started to run in the opposite direction. Today, reports now have it that unspent transaction outputs have now risen higher than their previous peak, showing again that people are heavily accumulating Bitcoin.
Could Prices Surge in April?
Judging by past years, the month of April seems to be a significant month for the crypto. Looking specifically at the last eight years, Bitcoin has always experienced some increase in the month of April, except for 2014 and 2015 when there was a major crypto winter.
A crypto analyst, Josh Olszewicz, posted a summary of Bitcoin prices in April since 2011. The list showed that April seems to be an important month for the crypto:
“historic $BTC prices in the month of April:
Based on this summary, it is anticipated that there will be a substantial increase in the price of Bitcoin, taking the price well past $4000 and probably up to $5000.
Some analysts have predicted in the past that if crypto can rise above $5000, it would take a very long time before it can drop below $4000 ever again. Therefore, people are eagerly waiting to see how the market would look, by April.
Today’s Bitcoin (BTC) Price Analysis with Top Altcoin Predictions: Ethereum (ETH), Ripple (XRP) and NEO