{"id":460401,"date":"2021-04-04T21:00:00","date_gmt":"2021-04-04T21:00:00","guid":{"rendered":"https:\/\/wncen.com\/?p=460401"},"modified":"2021-04-04T19:45:55","modified_gmt":"2021-04-04T19:45:55","slug":"supply-crunch-incoming-bitcoin-miners-stop-selling","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/supply-crunch-incoming-bitcoin-miners-stop-selling\/","title":{"rendered":"Supply crunch incoming? Bitcoin miners stop selling"},"content":{"rendered":"

Bitcoin continues to consolidate in the high $50,000 area, meanwhile, its fundamentals are strengthening and seem to point towards a price breakout.<\/p>\n

Analyst Ali Martinez has shared data from Glassnode to predict the timing for a new BTC price rally. According to the analyst, when the cryptocurrency surpasses the 1 million threshold in the metric Entity-Adjusted Dormancy Flow, historically BTC “goes parabolic.”<\/p>\n

Despite Bitcoin’s nearly 1,500% increase in a year, it is still below this threshold. The analyst stated<\/a>:<\/p>\n

Despite the 1,465% surge that $BTC experienced since the March 2020 crash, the Bitcoin Entity-Adjusted Dormancy Flow has yet to move past the 1M threshold. When and if it does, #BTC could enter a new parabolic phase posting more gains than what we have already seen.<\/p><\/blockquote>\n

Conversely, Martinez stated that when the Entity Adjusted Dormancy is rejected before surpassing the one million threshold, Bitcoin’s price experiences a pullback. In 2021, this has happened at least twice back in January and late February. As seen below, the cryptocurrency is close to this zone.<\/p>\n

\"Bitcoin
Source: Glassnode<\/figcaption><\/figure>\n

Bitcoin in an accumulation phase<\/h2>\n

Perhaps one of the most bullish fundamentals is Bitcoin miners’ behavior. Over the past few months, this sector had been selling much of its supply in BTC, increasing the selling pressure in the market.<\/p>\n

However, analyst Lex Moskovski has shown that miners have changed their position and started buying BTC to increase their reserves. Since late March and early April, miners have bought around 10,000 BTC. Moskovski stated<\/a>:<\/p>\n

Miner optimism doesn’t necessarily predict the price but it definitely takes out of the equation a major selling factor.<\/p><\/blockquote>\n

\"Bitcoin
Source: Glassnode<\/figcaption><\/figure>\n

The above is in tandem with a reduction in Bitcoin supply held on exchanges<\/a>. Research firm Glassnode records a two-year low in the cryptocurrency’s supply found on exchanges down to 2,399,090 BTC.<\/p>\n

Analyst William Clemente has taken this data to predict a BTC supply crunch which will contribute to the appreciation in the price of the cryptocurrency<\/a> in Q3 and Q4 of the current year. In the short term, the increase in funding rate could give BTC the boost it needs to reach a new ATH, according<\/a> to Jarvis Labs partner Ben Lilly:<\/p>\n

Jet fuel to the upside. Funding rates reset from the drop. Now the liquidity is higher, time to punch it.<\/p><\/blockquote>\n

BTC is trading at $58,150 with a sideways movement (-0,9%) during the last day. On the weekly chart, BTC has 4.2% gains and 19.3% in the monthly chart.<\/p>\n

\"Bitcoin
BTC showing sideways movement during the past day. Source; BTCUSD Tradingview<\/a><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Bitcoin continues to consolidate in the high $50,000 area, meanwhile, its fundamentals are strengthening and seem to point towards a price breakout. Analyst Ali Martinez has shared data from Glassnode to predict the timing for a new BTC price rally. According to the analyst, when the cryptocurrency surpasses the 1 million threshold in the metric Entity-Adjusted Dormancy Flow, historically BTC “goes parabolic.” Despite Bitcoin’s nearly 1,500% increase in a year, it is still below this threshold. The analyst stated: Despite the 1,465% surge that $BTC experienced since the March 2020 crash, the Bitcoin Entity-Adjusted Dormancy Flow has yet to move past the 1M threshold. When and if it does, #BTC could enter a new parabolic phase posting more gains than what we have already seen. Conversely, Martinez stated that when the Entity Adjusted Dormancy is rejected before surpassing the one million threshold, Bitcoin’s price experiences a pullback. In 2021, this has happened at least twice back in January and late February. As seen below, the cryptocurrency is close to this zone. Bitcoin in an accumulation phase Perhaps one of the most bullish fundamentals is Bitcoin miners’ behavior. Over the past few months, this sector had been selling much of its supply in BTC, increasing the selling pressure in the market. However, analyst Lex Moskovski has shown that miners have changed their position and started buying BTC to increase their reserves. Since late March and early April, miners have bought around 10,000 BTC. Moskovski stated: Miner optimism doesn’t necessarily predict the price but it definitely takes out of the equation a major selling factor. The above is in tandem with a reduction in Bitcoin supply held on exchanges. Research firm Glassnode records a two-year low in the cryptocurrency’s supply found on exchanges down to 2,399,090 BTC. Analyst William Clemente has taken this data to predict a BTC supply crunch which will contribute to the appreciation in the price of the cryptocurrency in Q3 and Q4 of the current year. In the short term, the increase in funding rate could give BTC the boost it needs to reach a new ATH, according to Jarvis Labs partner Ben Lilly: Jet fuel to the upside. Funding rates reset from the drop. Now the liquidity is higher, time to punch it. BTC is trading at $58,150 with a sideways movement (-0,9%) during the last day. On the weekly chart, BTC has 4.2% gains and 19.3% in the monthly chart.<\/p>\n","protected":false},"author":535,"featured_media":460402,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5651,3],"tags":[428,1119,1144],"class_list":["post-460401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","category-news","tag-bitcoin","tag-btc","tag-btcusd"],"acf":[],"yoast_head":"\nSupply crunch incoming? 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His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide. In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride. He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times. In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson\u2019s \u2018Neuromancer.\u2019 The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau\u2019s \u2018Civil Disobedience.\u2019 But that\u2019s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term. In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry. Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. 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