Spent Outputs 1w-1m

Spent Outputs 1 Week–1 Month Indicator

The Spent Outputs 1 Week–1 Month metric is an on-chain indicator that tracks the number of spent transaction outputs (UTXOs) aged between 1 week and 1 month. It provides insights into the behavior of short-to-medium-term holders, offering valuable information about their response to market conditions. This metric is particularly useful for identifying shifts in sentiment, short-term trading strategies, and market reactions to news or events.

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

1. Understand the Concept

• Spent Outputs 1 Week–1 Month: Measures the frequency of UTXOs created 1–4 weeks ago that are now being spent.

• Relevance: Reflects the activity of holders with relatively recent positions, including short-term traders and speculative participants.

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

• High Activity: Indicates increased spending by short-to-medium-term holders, often linked to profit-taking, market volatility, or reactions to price changes.

• Low Activity: Suggests reduced participation by these holders, reflecting market stability or confidence in holding their positions.

• Spikes in Activity: May signal reactions to major price movements, news events, or rapid changes in market sentiment.

3. Analyze Historical Patterns

• Market Tops: Spikes in this metric often coincide with profit-taking by short-to-medium-term holders during price rallies.

• Market Bottoms: Increased activity during downturns can indicate capitulation or panic selling by these holders.

• Stable Markets: Low activity is common during consolidation phases, as holders opt to maintain their positions through periods of reduced volatility.

4. Make Decisions

• During Bull Markets: Monitor high activity in this metric as a sign of profit-taking, which could precede short-term corrections or slowdowns in upward momentum.

• During Bear Markets: Increased activity may signal panic selling, potentially aligning with market bottoms and presenting accumulation opportunities.

• During Sideways Markets: Low activity reflects market calmness and can provide an ideal environment for assessing long-term strategies.

Tips:

• Combine with Other Metrics:

Use Spent Outputs 1 Week–1 Month alongside metrics like NUPL (Net Unrealized Profit/Loss), SOPR (Spent Output Profit Ratio), and Volume for a broader view of market behavior.

• Monitor Short-Term Sentiment:

Spikes in this metric often reflect shifts in short-term sentiment or rapid reactions to market changes, offering early signals of potential volatility.

• Identify Capitulation Events:

Increased activity during downturns may highlight capitulation by short-to-medium-term holders, signaling potential market bottoms.

• Compare Historical Patterns:

Evaluate current activity levels against historical trends to identify recurring behaviors and their impact on price dynamics.

How to Use the Indicator Effectively

• During Market Tops: High activity in Spent Outputs 1 Week–1 Month suggests profit-taking by short-to-medium-term holders, often signaling potential market tops or corrections. Use these signals to manage risk and assess the sustainability of price trends.

• During Capitulation Phases: Spikes in activity during market downturns reflect panic selling, which can align with market bottoms and present strategic buying opportunities for long-term investors.

• During Consolidation Phases: Low activity reflects reduced speculative behavior and market stability, providing favorable conditions for long-term planning and positioning.

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