Spent Outputs 1y-2y

Spent Outputs 1 Year–2 Years Indicator

The Spent Outputs 1 Year–2 Years metric is an on-chain indicator that tracks the number of spent transaction outputs (UTXOs) aged between 1 year and 2 years. It provides insights into the behavior of long-term holders, reflecting their responses to market conditions. This metric is particularly useful for understanding profit-taking by seasoned investors, long-term holder sentiment, and market cycle transitions.

Steps to Use the Spent Outputs 1 Year–2 Years Metric

1. Understand the Concept

• Spent Outputs 1 Year–2 Years: Measures the frequency of UTXOs created 1–2 years ago that are now being spent.

• Relevance: Highlights the activity of long-term holders who acquired their positions during earlier market cycles or lower price points.

2. Interpret the Spent Outputs 1 Year–2 Years Metric

• High Activity: Indicates profit-taking or strategic selling by long-term holders, often seen during bull market rallies or at market tops.

• Low Activity: Suggests that long-term holders are maintaining their positions, often observed during accumulation phases or market uncertainty.

• Spikes in Activity: May signal significant market events, such as major price movements or shifts in long-term sentiment.

3. Analyze Historical Patterns

• Market Tops: High activity in this age band often aligns with profit-taking by long-term holders during price surges, signaling potential market tops.

• Market Bottoms: Low activity during downturns reflects confidence among long-term holders, indicating they are holding through bearish conditions.

• Accumulation Phases: Minimal activity is common during market stabilization, as long-term holders prefer to retain their positions. 4. Make Decisions

• During Bull Markets: Monitor high activity in this metric for signs of increased selling pressure by long-term holders, which could signal potential corrections or slowing upward momentum.

• During Bear Markets: Low activity indicates that long-term holders are not capitulating, often signaling confidence in future market recovery.

• During Consolidation Phases: Stable or low activity suggests accumulation by long-term holders and a reduced likelihood of major selling pressure.

Tips:

• Combine with Other Metrics: Use Spent Outputs 1 Year–2 Years alongside metrics like Realized Cap for a deeper understanding of long-term holder behavior.

• Track Profit-Taking Trends: Increased activity during price rallies often indicates profit-taking by long-term holders, aligning with potential market tops.

• Monitor Capitulation Signals: Low activity during bear markets suggests that long-term holders are holding steady, providing confidence in market stability.

• Compare Historical Data: Evaluate current activity levels against historical trends during similar market conditions to identify recurring patterns.

How to Use the Indicator Effectively

• During Market Tops: High activity in Spent Outputs 1 Year–2 Years indicates that long-term holders are realizing profits, often aligning with market tops or corrections. Use these signals to manage risk or secure gains.

• During Market Bottoms: Low activity reflects long-term holder confidence, often marking accumulation phases and potential market bottoms. These conditions can present strategic entry opportunities.

• During Consolidation Phases: Minimal activity suggests reduced selling pressure from long-term holders, indicating market stability and favorable conditions for long-term positioning.

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