September Is Crucial For Bitcoin Price! You ask why? - News-Credit-Mortgage-Coin

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Friday, August 13, 2021

September Is Crucial For Bitcoin Price! You ask why?

 After the last few months that have been quite difficult for Bitcoin, people in the Bitcoin community believe that the coming months will make up for the damage done and there are positive signals for the Bitcoin price.

The Bitcoin market has been witnessing all kinds of squeezes lately. So, after the volatility squeeze and short-term squeeze, will the market now witness a 'supply squeeze'? Before answering the above-mentioned question, it is useful to look at the supply dynamics.



When will the jam occur?

Thus, a supply squeeze or a supply shock is an event where the supply of actively traded Bitcoin changes and triggers a Bitcoin price action retroactively. As he knows, most of the obvious supply shocks were seen during the halving phases and generally helped the price increase of the leading cryptocurrency. Well, the next halving will only happen in 2024 and most likely Bitcoin will witness a crunch at that time. But is it right to expect such an event in the coming months? According to the current supply distribution yes!


At the time of writing, the total supply of cryptocurrencies held by long-term HODLers stood at 12.48 million BTC. Now, as can be seen from the chart below, this number is pretty much in line with the coin volume that LTHs had in October 2020, just before the bullish phase started. Therefore, it can be said that the volume of cryptocurrencies accumulated in the first quarter of this year is tightly held. Overall, this presents a rather optimistic picture for general market sentiment.

Why is September important for Bitcoin price?

If the adjusted supply is taken into account along with the circulating supply, it can be seen that the supply owned by LTH has reached an all-time high of 82.68%. In addition, the cryptocurrencies in the hands of these investors have been witnessing a persistent uptrend for a while. On the other hand, the supply owned by STH is falling and is currently at 25%. Interestingly, major squeezes occurred when the STH supply rate reached 20%. So, currently, only 5% maturation is needed for the market to return to the squeeze state again. When this happens, the freely circulating supply will feel the squeeze.



In addition, middle and old coins (between 3 months and 2 years) showed a serious rise in the late period. Interestingly, these are considered bull market buyers and are currently leading the way in HODLing behavior. This actually implies that coin maturation is really in place and most bull market buyers are stuck around and become strong HODLers. While the supply squeeze hasn't reached 20% yet, the aforementioned trends in gaming suggest that the squeezed market will mostly arrive somewhere in mid-September.




Bull markets are often the result of a supply squeeze in bear markets. In fact, we have been in a bear market since May. With the above analysis in mind, it can be concluded that the real bull run has not yet begun and the latest surge is just a glimpse of what will actually happen in the coming weeks.


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