
Poloniex Exchange|Mar 03, 2025 05:55
🔍 What is UTXO?
UTXO (Unspent Transaction Output) is the Bitcoin transaction model, representing unused BTC outputs that can be spent in new transactions.
💡 How it works:
If you have 1 BTC UTXO and need to pay 0.4 BTC:
✅ The system spends the full 1 BTC, creating two new UTXOs:
0.4 BTC → Sent to the receiver 💸
0.6 BTC → Returned as change 🎯
📊 Why does UTXO matter?
🔹 UTXO Age – Analyzes holding time to assess market sentiment.
🔹 UTXO Distribution – Identifies price zones with strong support & resistance.
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