The supply of Bitcoin sitting on Exchanges just keeps dropping...
With the price of bitcoin stagnating the last few weeks, I am sure some started to wonder if perhaps the supply sitting on Exchanges had stopped going down...
It hasn't.
Based on the latest data from glassnode, it looks like the supply of bitcoin sitting on Exchanges is now at the lowest levels seen in roughly 3 years.
Check it out:
(Source: https://studio.glassnode.com/metrics?a=BTC&m=distribution.BalanceExchanges)
While the supply on Exchanges dwindling doesn't necessarily guarantee that the price is going to go up, it certainly does provide the opportunity.
As it stands now there is less and less supply available to be sold than basically any point in the less 3 years.
This is likely due to institutions buying up bitcoin and sending it to Grayscale as well as institutions buying it up and holding it in cold storage, which makes a lot of sense for a number of reasons.
But wait there's more...
Some seem to think the fun in bitcoin is over for now, and perhaps in the very near term it is.
However, we are pretty much exactly where we should be at this stage of the post halving bull market rally.
Check it out:
(Source:
)https://twitter.com/ecoinometrics/status/1355901175556501505/photo/1
- ecoinometrics
As you can see, as of yesterday we are pretty much smack dab between both the trends from 2013 and 2017.
Interestingly enough, had we followed the average expected in the above model, we would have hit $41k by December 31st.
We didn't actually hit $41k until January 8th, so we are about 9 days behind schedule. ;)
It's pretty amazing that we have moved right in between the previous two models so consistently. If we keep that up and move back up towards the average returns line, we would hit $100k by April 18th.
Sounds a little optimistic to me, but who knows, we only missed the last projection by about 9 days.
I think we will start to move towards the lower range of this pattern and mostly copy what happened in 2017.
If that is indeed the case we are going to peak on/around October 17th of this year at a price of over $200k.
Works for me!
Stay informed my friends.
-Doc