Bitcoin Supply Structure Very Similar To Early 2019, Bull Run Ahead?

Ronaldo Marquez

Last Updated: June 11, 2024 7:06 am

3 mins read

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Bitcoin (BTC), the largest cryptocurrency in the market, reached a new yearly high last week. However, since then, it has been trading within a new range between $29,500 and $30,000, failing to consolidate above this key level and continue its rally towards higher territories.

According to new data analyzed by Satoshi Club, a leading cryptocurrency platform, Bitcoin has built a strong foundation below $30,000, with the current supply structure resembling that of early 2016 and 2019. This news comes as a promising sign for bulls, suggesting that Bitcoin’s future may be brighter than previously thought.

Is Bitcoin Poised For New Highs?

According to Satoshi Club, the supply distribution of Bitcoin has been split into two: pre-FTX collapse for long-term holders (LTH) supply and post-collapse for short-term holders (STH) supply. This has resulted in LTH supply near all-time highs for several months or even a year.

Furthermore, according to Satoshi Club, BTC’s Long-Term Holder supply has reached a new all-time high of 14.161 million BTC. Meanwhile, the Short-Term Holder supply remains steady at 2.914 million BTC.

The most recent bull runs in 2016 and 2019 took 18-24 months to start, and during those times, Bitcoin saw a quick spike in long-term holdings in profit, followed by profit-taking. Currently, Bitcoin is experiencing strength in its price, with year-to-date (YTD) gains backed by an “explosive uptick” in coins held at a profit.

This means that more and more investors are holding onto their BTC, as they are currently in profit. This is a positive sign for the market as it indicates that investors have faith in the long-term potential of Bitcoin.

Additionally, Satoshi Club highlights that in the current market environment, the foundation of Bitcoin appears to be much stronger than in previous bear markets. In 2023, 6.2 million Bitcoin returned to profit, which represents 32.3% of the total supply. This indicates a strong cost basis foundation below $30,000, which is a positive sign for the long-term prospects of BTC.

Moreover, according to Satoshi Club, Bitcoin is unlikely to visit prices below $15,500 in the short term. This prediction is based on the current supply structure of Bitcoin, which indicates that there is significant support for the cryptocurrency at this price point.

BTC Bulls Rejoice

CryptoQuant, a leading crypto market data analytics platform, has released an analysis on the use of the “net volume” movement in predicting Bitcoin price fluctuations in the futures market. The analysis suggests that using a 72-day moving average to analyze the difference between long and short position volumes can help to some extent in predicting BTC price fluctuations.

According to CryptoQuant’s analysis, the current Bitcoin position in the futures market is similar to what was observed in November and December 2020. From a sentiment perspective, the potential for Bitcoin’s price to rise is greater as increasing short positions are being liquidated.

At the time of writing, the largest cryptocurrency in the market is trading at $30,000 and has been trading sideways for the past 24 hours. However, if BTC can maintain its current trading zone, there is potential for it to bounce from the support level and reach new yearly highs.

Featured image from Unsplash, chart from TradingView.com

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.

With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

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