Supply gaps and technical metrics point to BTC growth

While Bitcoin (BTC) continues to move in the $22,000-24,000 corridor, its 200-week moving averageshows that the cryptocurrency continues to grow in strength every week.

Bitcoin analyst and author of the popular reserve-to-inflow ratio (S2F) model PlanB shows that 200-WMA ($ 7,700 each) is growing faster than previously expected - 6.5% per month.

#bitcoin 200WMA increasing faster and faster pic.twitter.com/Gqr48XSU1q

- PlanB (@ 100trillionUSD) December 21, 2020

MicroStrategy CEO Michael Sailor reacted to this message:

"Bitcoin (BTC) is like an accumulator charged with monetary energy.investment is~4 years as long as the price trades above the 200-week moving average (200WMA) the network startsThe more intense the bidding, the faster the energy is absorbed."

#Bitcoin is like a battery charged with monetaryenergy. Since a rational investment time horizon is ~ 4 years, as long as the price is trading above the 200 week moving average (200WMA), the network is powering up. The more intensely it trades, the faster #BTC absorbs energy. https://t.co/l94C5DVx5V

- Michael Saylor (@michael_saylor) December 21, 2020

Bitcoin (BTC) entered a sharpcorrection, falling below $ 22,000, then on Tuesday it climbed back above the $ 23,000 level. At this point, MicroStrategy CEO Michael Sailor poured a whopping $ 650 million in Bitcoin, buying BTC at $ 21,925. It was at that time that JPMorgan strategists noted that institutional inflows into Bitcoin are essential to sustaining Bitcoin's growth.

At the time of publication, BTC was trading at $ 22628 with a market cap of $ 420 billion. Despite yesterday's correction, on the weekly charts, BTC shows an increase of 16%. Other indicators such as BTC supply and liquidity crunch also hint at future bullish momentum.

Glassnode CTO Rafael Schulze Kraft provided some interesting network indicators explaining the Bitcoin (BTC) supply and liquidity crisis and his optimism:

"Bitcoin is in a supply and liquidity crisis.It's very underrated.

I believe that this will have a significant impact on the price of bitcoin in the coming months.Look at the data."

#Bitcoin is in a supply and liquidity crisis.

This is extremely bullish! And highly underrated.

I believe we will see this significantly reflected in Bitcoin’s price in the upcoming months.

Let’s take a look at the data.

A thread ??? pic.twitter.com/vx6rJmiloE

- Rafael Schultze-Kraft (@ n3ocortex) December 21, 2020

Now let's take a look at the data provided by Schulze-Kraft:

• True BTC hodlers at presentrepresent 14.5% of the total supply, with 2.7 million coins stored in their bitcoin wallets. These are addresses that have never spent bitcoins, but only received them.
• Despite the fact that the total supply of bitcoincapped at 21 million, nearly 16% of the supply, or 3 million, is lost forever. Thus, the actual availability of BTC is less than the total supply of coins.
• Institutional demand continues to grow every month.
• Almost 185,000 BTC have been mined since the bitcoin halving in May 2020, of which Grayscale acquired 210,000 BTC. Accordingly, they bought more than was mined.
• As we know, bitcoin (BTC) liquidity is rapidly disappearing from crypto exchanges, much of it will probably go to cold storage. Meanwhile, institutions are making huge OTC trades.
• 14.4 million BTC (78% of the current supply) belongs to those who spend less than 25% of the received bitcoins.
• Interestingly, even miners don't spend their BTC as the unspent supply of miners continues to increase since the last halving. Their current balance is 1.7 million BTC.

This information from the CTO of Glassnode indicates that the bullish momentum is gaining momentum and Bitcoin (BTC) will definitely continue to rise in the future.

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