The below is from a recent edition of the Deep Dive, Bitcoin Magazine‘s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.
Supply squeeze: that has been the topic of many of the past Daily Dives and it will be the topic today, because the underlying story remains the exact same.
Demand for an absolutely scarce, inelastic monetary asset continues to increase, supply is getting pulled off the market at feverish pace, and price isn’t reacting.
The market is finally starting to wake up.
The BTC daily chart looks ripe for a monster breakout, with a lot of hot air above the $43,000 level.
On-chain volume tells a similar story, with little resistance above the $43,000 level, with a massive wall of UTXO distribution below. Following the months of accumulation in the range of $30,000 to $40,000, bitcoin has very strong support and it would most likely take a large meltdown in global equity markets for bitcoin to break the range low and fall below $29,000.
As we have been highlighting the supply shortage and dichotomy between derivative market bearishness and spot market accumulation, we present a fascinating chart below.
Plotted below is the price of bitcoin, the percentage of circulating supply not on exchanges and the amount that is illiquid. Derivative market bearishness is like trying to fight gravity when the supply side is squeezed as hard as it currently is.
With the way that bitcoin trades, it is entirely possible for all-time highs to be made in short order, as in over the next month or two. Bitcoin price action is reflexive in bull markets, as higher price increases demand, driving price even further.
The under is from a current version of the Deep Dive, Bitcoin Journal‘s premium markets publication. To be among the many first to obtain these insights and different on-chain bitcoin market evaluation straight to your inbox, subscribe now.
Provide squeeze: that has been the subject of lots of the previous Each day Dives and it is going to be the subject at this time, as a result of the underlying story stays the very same.
Demand for a completely scarce, inelastic financial asset continues to extend, provide is getting pulled off the market at feverish tempo, and value is not reacting.
The market is lastly beginning to get up.
The BTC day by day chart seems ripe for a monster breakout, with plenty of scorching air above the $43,000 degree.
On-chain quantity tells an identical story, with little resistance above the $43,000 degree, with an enormous wall of UTXO distribution under. Following the months of accumulation within the vary of $30,000 to $40,000, bitcoin has very sturdy assist and it will most definitely take a big meltdown in world fairness markets for bitcoin to interrupt the vary low and fall under $29,000.
As we’ve got been highlighting the availability scarcity and dichotomy between by-product market bearishness and spot market accumulation, we current an interesting chart under.
Plotted under is the value of bitcoin, the share of circulating provide not on exchanges and the quantity that’s illiquid. Spinoff market bearishness is like making an attempt to battle gravity when the availability aspect is squeezed as arduous because it presently is.
With the best way that bitcoin trades, it’s solely doable for all-time highs to be made in brief order, as in over the subsequent month or two. Bitcoin value motion is reflexive in bull markets, as greater value will increase demand, driving value even additional.