Data shows that Bitcoin’s short-term supply has reached an all-time low. This may mean that investors are unwilling to sell at this level despite the last rally where the coin broke $ 57,000.
Bitcoin’s short-term supply hits all-time lows
According to the latest Arcane research Weekly report, BTC’s short-term supply is currently hovering around all-time lows.
The “short term supply”Refers here to the supply of parts that have been moved on the line in the last three months.
When the value of this indicator increases, it means that there are currently many short term holders in the market looking to make a quick profit.
On the other hand, a decrease in the value of the metric suggests that few holders are interested in selling right now and expect longer gains.
Now here’s a chart that shows Bitcoin’s short-term supply trend over its entire history:
Looks like the indicator is currently touching all-time lows | Source: The Arcane Research Weekly Update - Week 40
As the chart above shows, short-term supply has trended downward over the past few months and has now reached unprecedented lows.
Looking at the chart, it looks like the only other time the indicator has shown values near this low was in 2015.
As of September 30, the short-term supply of BTC was around 14.7%. This is its lowest value ever recorded. In the last two weeks since then, the metric has seen a slight increase to 14.9%.
The reason for this small increase is that of Bitcoin rally in progress where the coin broke $ 47,000 for the first time since May of this year.
One thing to note here is that this indicator is based on the chain movement of the parts. So, if some investors keep their BTC on exchanges rather than personal wallets, the metric will not show any increase when they sell their coins on the exchange.
For this reason, the short-term supply is not the most accurate indicator of whether or not investors are making a profit. Nonetheless, it shows that many holders with their own wallets are reluctant to sell at this time as they believe the price will rise further.
At the time of writing, The price of Bitcoin floats around $ 54.9,000, up 0.7% over the past seven days. Over the past month, the crypto has gained 24.6% in value.
The chart below shows the BTC price trend over the past five days:
Looks like Bitcoin is showing a dip right now after a large move up | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research