The supply shock rate for the long-term holder of Bitcoin has reached its highest level in years, on-chain data shows. Historical comparisons reveal that this could mean that the price of the cryptocurrency could soon rise again.
LTH . supply shock
Quoting data from analytics firm Glassnode, famous crypto strategist Will Clemente recently the summary The big change in trend for long-term contract holders and their behavior towards the underlying cryptocurrency.
This coincides with several previous reports claiming that these investors, usually seen as those who refuse to sell their coins for a year or more, have held their bitcoins even in times of increased volatility.
The metric – the long-term supply shock to the holder – mainly takes into account currencies that have not moved for a long time. Hence, they are considered unavailable compared to recently moved tokens and are considered more available.
As the chart above shows, LTH supply shock has gone up since the middle of this year and is currently at record levels. Clemente described this as a broadly bullish signal that historically acted as a catalyst for a bullish rally.
“Every time the metric hits the upper end of the highlighted green band, we see a significant rise in prices over the coming months.”
100 thousand dollars incoming?
The crypto community was not lacking in predictions of where the price of BTC would be at the end of a given year. However, it seems that the next few months, i.e. the end of 2021, will be discussed privately.
The number of people who predicted a price of $100,000 per coin by December 31 includes Chainalysis CEO, Adam Buck, analyst Kevin Wadsworth, Tom Lee, Anthony Scaramucci, and others.
Interestingly, this is also the same price as the popular stock-to-flow model imagines. By describing stock as the size of current reserves (stocks) and inflow as the annual supply of bitcoin, S2F and its variations see bitcoin doing well within a six-figure territory in the next few months.
Even the worst case scenario of the creator, which is more bearish than S2F, expects BTC to eventually cross $100,000 in December of this year.
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