Bitcoin (BTC) briefly broke the $ 60,000 mark for the first time since April, while its upward momentum continues. However, the benchmark cryptocurrency had declined to the $ 59,033 area during intraday trading, according to it CoinMarketCap.
On-chain analyst Will Clemente believes the next few months will be wild for Bitcoin as holders long-term supply shock rate is at an all-time high (ATH). He called:
“The long-term owner’s supply shock ratio is now clearly higher than ever before. The next few months will be wild. “
Hence, it shows an impending supply shortage in the Bitcoin market. The scarcity of the leading cryptocurrency has peaked as illiquid or immobile supply recently hit 85% in the past three months.
As a result, as supply decreases and demand increases, the price is expected to increase due to market forces.
Long-term owners are notable players in the Bitcoin ecosystem as they hold 70% of the market capitalization. Cryptanalytical company Glassnode explained:
“As Bitcoin breaks over $ 59,000, long-term owners have returned to impressive unrealized gains. The LTH cohort currently holds 70% of the market capitalization in unrealized profits. If this metric rises above 75%, it would be similar to the 2013 double rally scenario. “
Who are the biggest drivers in the current rally?
According to Ki Young Ju, the CEO of CryptoQuant, BTC whales were the engine behind the current price surge. He specified:
“This rally was driven by whale buying, not short squeeze. Massive BTC buy orders on derivatives exchanges do not come from short liquidations. This means: 1. So far, no large short positions have been liquidated. 2. Whales have built long positions since the slump. “
Market analyst Jan Wüstenfeld confirmed this assessment and added:
“Not only is whale activity in the chain increasing, the 7-day moving average of the number of active Bitcoin addresses is also trending upwards.”
With the price of Bitcoin just a stone’s throw away from a record high of $ 64,800, time will tell if it will break.
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