Crypto analyst William Clemente observed that the BTC Supply Decline (a metric that tracks the amount of Bitcoin in the hands of strong and weak hands) is showing a bullish divergence.
The co-founder and CTO of cryptanalyst company Glassnode believes the network data points to an imminent Bitcoin supply crisis.
According to the latest data from the company, almost 2,000,000 BTC have gone from short-term to long-term holders since April this year.
Rafael Schulze-Kraft of Glassnode emphasizes that «supply will not match demand.»
#Bitcoin supply has been steadily maturing to old hands.
From the peak at $ 65k, almost 2 million $ BTC have transitioned from short-term to long-term holders.
Supply will not be able to match demand.
Be patient, #hodl.
– Rafael Schultze-Kraft (@ n3ocortex) September 21, 2021
Glassnode defines a long-term holder as any Bitcoin user who has held their BTC for at least 155 days.
Clemente notes that the current level of online activity is similar to that seen in June and July, right before the largest digital asset by market cap experienced its August surge.
«Bullish divergence between online investor activity and price, as in June / July.»
Bullish divergence between on-chain investor activity and price, just like in June / July.
«On-chain is hopium» replies, just like in June / July.
– Will Clemente (@WClementeIII) September 22, 2021
