Bitcoiners have several reasons to be positive in October, the fourth quarter of the year. Particularly, Bitcoin bulls appear to be moving quickly, as they started to warm up almost instantly after the new month started. After effectively repairing September’s losses, the bulls are already trying $60,000, according to experts. Thus, Bitcoin is well-positioned to test its $64k all-time peak, with the current price of $55,182.
Lengthy Bitcoin holders supply shock reaches record levels
Several factors might easily accelerate the bullish price breakthrough. The lengthy holder supply shock was recently added to the list, causing market participants to become agitated.
Short-term supply is generally suggestive of traders mining their assets to make rapid gains, but lengthy holders’ supply reflects the number of Bitcoins that have not moved in the past several months.
The supply shock experienced by long-term investors in the figure below demonstrates that 2019 lengthy holders have yet to succumb to the bears. Lengthy market investors are holding their Bitcoins closely, as on-chain research has demonstrated many times this year. On the other hand, beginning investors have been blamed for most of the year’s selloffs seen in prior bear markets.
It’s important to note that not all of the new investors sold their stuff. According to on-chain analytics company Glassnode, Lengthy holders have been in the market for more than five months. Notwithstanding Bitcoin’s drop below $30,000 in July, it seems that many of those in that category kept their coins.
“What’s remarkable to me about long-term holder supply reaching ATHs is: Glassnode uses a 155-day threshold to define LTHs. Go back 155 days, where we’re we? Two weeks before the initial drop to $30K. These entities held strong the whole way down and are now aging into LTHs.”, according to analyst William Clemente’s observations
Aside from the new high suggesting that strong hands are optimistic about the future, the measure is generally accompanied by a significant price increase.
Clemente further clarified this in a tweet that says,
“Long-term holder supply shock has reached all-time highs. Each time the metric has reached the upper bound of the highlighted green range we’ve seen major price appreciation over the coming months. Buckle up.”