Bitcoin’s scarcity is increasing as more investors, both big and small, are accumulating BTC. This could lead to a significant price jump, especially given recent positive price movements.
A Big Shift in Bitcoin’s Supply
Crypto analyst Kyle Doops noticed a major change in a key Bitcoin metric: the Long/Short-Term Holder Supply Ratio. This ratio shows the balance between long-term and short-term investors. A recent drop to 3.6 – the lowest point in this market cycle – suggests that long-term holders are losing confidence and selling off. Doops believes this shift could signal a big price move.
He also points out that the Taker Buy/Sell Ratio on Binance is positive. This means more people are buying than selling, further suggesting strong demand.
Bitcoin in Bull Market Territory?
While Bitcoin’s price fluctuates, on-chain data from CryptoQuant shows it’s currently in bull market territory. A key indicator – the short-term 30-day moving average crossing above the long-term 365-day moving average – could confirm a stronger upward trend and potentially trigger a price surge. However, CryptoQuant also warns that a price correction is possible if the price moves closer to the “red zone”.
In short, several key indicators suggest a potential Bitcoin price surge is on the horizon. But, as always, the crypto market is volatile, so it’s wise to proceed with caution.
