Bitcoin Supply Looks Illiquid As Long-Term Holders Keep From Selling
November 10 2021 - 2:00PM
NEWSBTC
Data shows Bitcoin supply has been relatively illiquid recently as
long-term holders haven’t started realizing profits much. Bitcoin
Supply Last Moved Within 30 Days Has Been Relatively Low As per the
latest weekly report from Arcane Research, despite a rise in BTC’s
price recently, the supply moved within the last 30 days hasn’t
risen much. The percentage of Bitcoin supply last moved in the past
30 days is an important indicator that tells us about the liquidity
of the market. Usually, when coins start aging more, they become
less likely to be moved. Because of this reason, a low proportion
of short-term supply implies low liquidity in the market. This can
be a bullish signal for BTC. On the other hand, if a high
percentage of Bitcoin supply is young, then the liquidity would be
high. This may be a sign of bearish trend. Based on the trend of
the indicator, it may be possible to tell whether the market is
nearing a peak or not. Here is a chart that shows how the value of
the BTC young supply has changed since 2017: Looks like the current
percentage of supply moved in the last thirty days is relatively
low | Source: The Arcane Research Weekly Update - Week 44 The above
graph shows some interesting features between the indicator and the
Bitcoin price during the two bull runs of 2017 and 2018. Related
Reading | Bitcoin Sentiment Suggests Serious Greed, But Will A
Correction Come? In 2017, whenever the short-term supply peaked,
the price of the crypto also made a top. But the trend didn’t hold
true in 2021 as the sole sharp spike in the metric has been
followed by a strong bull market that lasted three months. The
sharp spike in the short-term supply this year was seen when
Bitcoin broke the 2017 all-time high. Long-term holders started
selling then, increasing the liquidity. The demand for the coin
only increased in the following months, but the supply shock became
too big. The price started moving down soon after. Related Reading
| S2F Creator PlanB Believes In $98k Nov Target For Bitcoin
Currently, the short-term supply is sitting at a healthy 10%, which
means it has enough room to grow still, despite already making a
new ATH. This means that if Bitcoin’s strength remains, the market
can still grow before hitting a top. BTC Price At the time of
writing, Bitcoin’s price floats around $68.2k, up 10% in the last
seven days. Over the past month, the crypto has gained 18% in
value. Below is a chart that shows the trend in the price of the
coin over the last five days. BTC's price has made a new ATH above
the $68k mark | Source: BTCUSD on TradingVIew Featured image from
Unsplash.com, charts from TradingView.com, Arcane Research
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