Bitcoin

Bitcoin’s active offering hits a 19-month low: is it bullish or bearish?

The active supply of Bitcoin (BTC) has dropped to a 19-month low of just over a million bitcoins. This could signal a possible price increase if it matches the results of a report published earlier this month by the wealth manager Stack Funds.

Bitcoin active supply

Active supply of Bitcoin. Source: Glassnode

In line with the 2017 upward trend

Bitcoin’s active offering hits a 19-month low: is it bullish or bearish?
Bitcoin’s active offering hits a 19-month low: is it bullish or bearish?

Active offerings rose sharply earlier this year, rising 16% in less than three weeks to over 1.3 million Bitcoin. Looking at the 90-day moving average of the past three years, this pattern of a sharp rise followed by an almost equal retreat was seen twice before, both just before a sharp rise in prices.

Bitcoin 90 days active supply

90 days active delivery for Bitcoin. Source: Stack Funds

The decline in active supply shows that more users are holding their Bitcoin instead of trading it.

Active addresses show the same pattern

Earlier this month, Bitcoin’s active addresses rose sharply, reaching one year before falling in the past two weeks. This pattern was observed again shortly before the upward trend in 2017 and the sharp rise in prices in the first quarter of 2019.

Active Bitcoin addresses

Active Bitcoin addresses. Source: Glassnode

Miners are an important part of those who stick to their bitcoins

A relatively recent statistic released by Glassnode that analyzes the volume of Bitcoin miners ‘network flow (the amount of Bitcoin flowing to the miners’ addresses minus the amount of Bitcoin flowing out of them) shows this Miners represent a strong percentage of those who have had Bitcoin with an almost completely positive network flow since the beginning of the year.

Netflow volume of Bitcoin miners

Network volume of the Bitcoin miner. Source: Glassnode

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