Bitcoin’s long-term holder supply shock rate has entered its highest territory in years, the on-chain data shows. Historic comparisons reveal that this could mean that the price of the cryptocurrency could soon head upwards once more.
LTH supply shock
Citing data from analysis firm Glassnode, popular crypto strategist Will Clemente recently describe the significant change in trend of long-time holders and their behavior towards the main cryptocurrency.
This coincides with numerous previous reports claiming that such investors, typically regarded as those who refuse to sell their coins for one year or more, have retained their BTC portions even in times of enhanced volatility.
The metric – Long-Term Holder Supply Shock – basically considers parts that have not moved for a long time. Consequently, they are considered unavailable compared to the tokens that were recently transferred and are regarded as more available.
As the graph above shows, the LTH Supply Shock Ratio has skyrocketed since mid-year and is currently at record levels. Clemente described this as a widely bullish signal that has historically served as the catalyst for bull runs.
“Each time the metric hit the upper end of the highlighted green range, we saw significant price appreciation over the next few months. “
$100K Incoming?
The cryptocurrency community has never been short of predictions where BTC’s price will be at the end of a particular year. However, it seems that the next few months, i.e. the end of 2021, are particularly hotly debated.
The number of people that have forecasted a $100,000 per coin price by December 31st includes the CEO of Chainalysis, Adam Back, analyst Kevin Wadsworth, Tom Lee, Anthony Scaramucci, and more.
Interestingly, this is also the same price as the popular stock-flow model is considering. By describing the stock as the size of existing reserves (stockpiles) and the flow as the annual supply of bitcoins, the S2F and its variations see bitcoin going well within a six-digit territory in the next few months.
Even the creator’s worst-case scenario, which is more bearish than the S2F, predicts that BTC will eventually surpass $ 100,000 in December of this year.
