The data shows that Bitcoin’s short-term supply has hit an all-time low. This may mean that despite the recent rally that broke the $ 57,000 coin, investors may not want to sell at these levels.
Bitcoin’s short-term supply is making all-time lows
According to the latest weekly report from Arcane Research, BTC’s short-term supply is currently hovering around all-time lows.
The “short-term offer” here refers to the delivery of coins that have been moved on the chain within the last three months.
If the value of this indicator increases, it means that there are currently many short-term holders in the market who want to make a quick profit.
On the other hand, a decrease in the value of the metric suggests that not many owners are currently interested in a sale and are waiting for longer profits.
Now, here is a chart that shows the trend in bitcoin short-term supply across its entire history:
It looks like the indicator is currently hitting an all-time low | Source: The Arcane Research Weekly Update – Week 40
As the graph above shows, short-term supply has been on a downtrend in recent months and has now hit unprecedented lows.
Looking at the chart, it seems like the indicator is the only other time that the indicator has shown values near this low in 2015.
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On September 30, BTC’s short-term supply was around 14.7%. This is the lowest ever. In the past few weeks, the figure has risen slightly to 14.9% since then.
The reason for this small surge is Bitcoin’s current rally, in which the coin broke through $ 47,000 for the first time since May of this year.
It should be noted here that this indicator is based on the movement of the coins in the chain. So if some investors keep their BTC on exchanges rather than personal wallets, the metric won’t show any increase when they sell their coins on the exchange.
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Because of this, the short-term supply is not the most accurate indicator of whether or not investors are realizing their gains. Nonetheless, it shows that many wallet owners are currently holding back from selling, believing the price will continue to rise.
At the time of writing, Bitcoin’s price is hovering around $ 54.9,000, up 0.7% over the past seven days. Over the past month, crypto has appreciated 24.6% in value.
The following graphic shows the development of the BTC price over the last five days:
Looks like Bitcoin is now showing a dip after a big uptrend | Source: BTCUSD on TradingView Selected image from Unsplash.com, charts from TradingView.com, Arcane Research