Spent Outputs 1m-3m

Spent Outputs 1 Month–3 Months Indicator

The Spent Outputs 1 Month–3 Months metric is an on-chain indicator that tracks the number of spent transaction outputs (UTXOs) aged between 1 month and 3 months. It provides insights into the activity of medium-term holders, offering a snapshot of their behavior in response to market conditions. This metric is particularly useful for understanding shifts in sentiment, profit-taking, and medium-term trading strategies.

Steps to Use the Spent Outputs 1 Month–3 Months Metric

1. Understand the Concept

• Spent Outputs 1 Month–3 Months: Measures the frequency of UTXOs created 1–3 months ago that are now being spent.

• Relevance: Reflects medium-term holder behavior, including profit-taking, reallocation, or panic selling in response to market dynamics.

2. Interpret the Spent Outputs 1 Month–3 Months Metric

• High Activity: Indicates increased spending by medium-term holders, often associated with profit-taking during bull markets or panic selling during downturns.

• Low Activity: Suggests reduced activity by medium-term holders, often observed during periods of accumulation or market stability.

• Spikes in Activity: May signal reactions to significant price movements, market events, or strategic portfolio adjustments.

3. Analyze Historical Patterns

• Bull Markets: High activity in this age band often aligns with profit-taking by medium-term holders during price rallies.

• Bear Markets: Increased activity can signal capitulation by medium-term holders, often observed near market bottoms.

• Sideways Markets: Low activity reflects market indecision or medium-term holders choosing to hold through consolidation phases.

4. Make Decisions

• During Bull Markets: Monitor high activity in this metric as a potential signal of profit-taking, which may precede short-term price corrections.

• During Bear Markets: Spikes in activity during downtrends can indicate capitulation by medium-term holders, potentially signaling market bottoms and accumulation opportunities.

• During Stable Markets: Low activity reflects market calmness, providing time to evaluate long-term investment strategies.

Tips:

• Combine with Other Metrics: Use Spent Outputs 1 Month–3 Months alongside metrics like RHODL Ratio, SOPR (Spent Output Profit Ratio), and Volume for a comprehensive understanding of holder behavior.

• Track Profit-Taking Trends: Increased activity in this metric during bull runs may highlight profit-taking by medium-term holders, offering early signs of potential market reversals.

• Assess Capitulation Phases: High activity during bear markets can indicate capitulation by medium-term holders, often aligning with market bottoms and strategic buying opportunities.

• Compare Historical Data: Evaluate current activity levels against historical patterns to identify recurring behaviors and their correlation with market trends.

How to Use the Indicator Effectively

• During Market Tops: High activity in Spent Outputs 1 Month–3 Months suggests profit-taking by medium-term holders, often signaling potential market tops. These signals may warrant caution and risk management strategies.

• During Capitulation Events: Spikes in activity during market downturns reflect panic selling by medium-term holders, often marking market bottoms and presenting favorable accumulation opportunities.

• During Consolidation Phases: Low activity indicates reduced medium-term holder participation, signaling market stability and potential for strategic long-term positioning.

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