Bitcoin [BTC]: A sell-off could be on the horizon, unless…

ambcrypto.com:

In 2022, several analysts, at different intervals, gave their opinion on Bitcoin [BTC] hitting rock bottom. And on many occasions, the king coin did not agree with the analysts, even though some issues like the FTX collapse played a part in subsequent price drops.

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Fast forward to 2023. It could seem that some of those calls were wrong, as BTC had only fared better. According to CryptoQuant analyst BaroVirtual, the condition of the Unspent Transaction Output (UTXO) age bands was instrumental to the strides recorded in the new year.

The UTXO Age Bands summarizes the behavior of short and long-term holders in view of the macro shift in influence among both parties. The analyst opined that there was a bearish crossover between the 6 million to 12 million and 12 million to 18 million age bands. This confirmed the early bullish signal before the press time reflection.

Source: CryptoQuant

An explanation of the data above points to the fact that new buyers within the longer UTXO age bands have emerged. This fostered the position for a further long-term HODL and has helped support BTC price action.

However, BaroVirtual mentioned that BTC risks a bearish stance in the mid-term. Although he pointed out that the sell-off might not occur until BTC hits between $30,000 or $33,000 or in unusual circumstances, $37,000 to $40,000 region. 

The analyst also defended his position by referring to the historically even bearish years and odd bullish seasons. He noted that he doesn’t expect the potential second uptrend to be better than the first quarter, stating:

“Bitcoin lives in 4-year cycles from one halving to another. An even year is a bear, and an odd year is a bull.