Spent Outputs 1d-1w

Spent Outputs 1 Day–1 Week Indicator

The Spent Outputs 1 Day–1 Week metric is an on-chain indicator that tracks the number of spent transaction outputs (UTXOs) that are between 1 day and 1 week old. It provides insights into the activity of short-term holders and recent buyers, helping to identify speculative behavior, market sentiment, and potential price volatility.

Steps to Use the Spent Outputs 1 Day–1 Week Metric

1. Understand the Concept

• Spent Outputs 1 Day–1 Week: Measures the frequency of UTXOs that were created 1 day to 1 week ago and are now being spent.

• Relevance: Highlights the behavior of short-term holders and recent market participants, reflecting speculative activity and potential market reactions.

2. Interpret the Spent Outputs 1 Day–1 Week Metric

• High Activity: Indicates increased selling or trading by short-term holders, often seen during volatile markets or speculative phases.

• Low Activity: Suggests reduced activity from recent buyers, reflecting market stability or the absence of speculative behavior.

• Spikes in Activity: May signal news-driven events, short-term profit-taking, or panic selling by recent entrants.

3. Analyze Historical Patterns

• Market Volatility: Spikes in this metric often align with periods of heightened volatility, including sharp price movements or market reactions to news.

• Speculative Phases: Sustained high activity reflects speculative behavior, often near market tops or during rapid price rallies.

• Accumulation Phases: Low activity indicates reduced short-term trading, often seen during periods of consolidation or accumulation.

4. Make Decisions

• During Bull Markets: Monitor spikes in this metric for signs of speculative excess, as short-term holders may sell to take quick profits.

• During Bear Markets: Increased activity can signal panic selling by short-term holders, potentially marking capitulation phases and buying opportunities.

• During Stable Markets: Low activity reflects market calmness, suggesting accumulation by long-term participants or reduced speculative interest.

Tips:

• Combine with Other Metrics:

Use Spent Outputs 1 Day–1 Week alongside metrics like NUPL (Net Unrealized Profit/Loss) and Volume to better understand short-term market trends.

• Track Speculative Behavior:

Spikes in this metric can highlight increased short-term speculation or rapid market reactions to news or events.

• Focus on Volatility Indicators:

High activity in this metric often aligns with volatile price movements, providing early signals of short-term market shifts.

• Compare Historical Data:

Evaluate current activity levels against historical patterns during similar market conditions to identify recurring behaviors.

How to Use the Indicator Effectively

• During Market Volatility: High activity in Spent Outputs 1 Day–1 Week signals increased speculative trading by recent buyers, often coinciding with rapid price changes. These periods warrant caution and close monitoring of market trends.

• During Capitulation Phases: Spikes in activity during market downturns indicate panic selling by short-term holders, often signaling market bottoms and presenting opportunities for long-term accumulation.

• During Market Stability: Low activity reflects reduced speculative behavior and market calmness, providing favorable conditions for evaluating longer-term investment strategies.

Created By: This indicator is a widely recognized tool in blockchain analytics.