Crypto Industry news:
Bitcoin's short-term supply continues to shrink. The number of BTC changing owners drops to 2015 levels. According to the latest Arcane Research report, the BTC supply shock continues as the number of owner change coins drops to levels not seen since 2015.
The "number of bitcoin changing owners" here refers to all coins that have recently been issued. The timeframe for supply depends on the approach taken, but the chart in the report uses supply metrics on a 1-month and 3-month scale.
This dimension of supply is often referred to as "short-term" - such coins are associated with traders who want to make quick profits.
On the other hand, long-term supply shows the number of coins that have not been transferred in the last few months, so the indicator is related to holders showing an HODL attitude. Only 6.8% of the supply in circulation changed hands in the last month. The indicator for the 3-month metric is approximately 15.8%.
The 1-month supply of bitcoin is currently all the time low, while the 3-month supply remains close to 2015.
The recent price movement above the 50k mark USD resulted in a slight increase in supply in one month. This was mainly due to the movements of coins issued in the last 1-3 months.
Only short-term profit-taking holders moved their BTC during this period. This means that long-term holders have not moved their coins during the recent gains and are waiting for the BTC price to rise further. The low short-term supply may therefore prove to be a pro-growth signal for price.
Technical Market Outlook
The BTC/USD pair has been rejected from the 50% Fibonacci retracement seen at the level of $48,044. After the shallow pull-back, the bulls are trying again to break out higher. The support is located at the level of $47,290. The next target for bulls is seen at the level of $49,162 (61% Fibonacci retracement) and $49,316 (technical resistance). The positive and strong momentum supports the short-term bullish outlook despite the overbought market conditions.
Weekly Pivot Points:
WR3 - $59,391
WR2 - $56,198
WR1 - $49,661
Weekly Pivot - $46,351
WS1 - $40,043
WS2 - $36,782
WS3 - $30,164
Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $59,506. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).
