The bitcoin turmoil with red candles has continued for the past two weeks. After Bitcoin forged a recovery path, Bitcoin again fell below the $ 46,000 mark on December 20. With BTC testing a low of $ 45,840 at the time of going to press, the market cap is the global crypto market is down 3.06% on the price chart.

But where do we really stand when the larger macrostructure still leans toward the cops when the holiday season knocks on the door?

HODLers and row miners

Bitcoin miners ‘earnings have rallied after falling on December 16, while Bitcoin miners’ untapped supply is just 500 BTC below its all-time high. These coins are given to miners as a reward for solving a block, but have never been given out on the chain.

In particular, miners have started HODLing significantly more BTC since March 2020, and the price has been on an upward trend since November.

Source: Glassnode

Additionally, BTC Liquidity Supply, which represents the total supply of illiquid companies, is one of the notable Bitcoin stories in 2021 after the May write-off.

These HODLers in particular were the first to start stacking, and at the time of writing, Illiquid Supply’s growth rate has outpaced coin issuance by a factor of 3.4.

The source: TXMC

In general, the supply side of the supply-demand equation for Bitcoin looks pretty good as HODLers and miners are still in a long period of accumulation. That being said, the last Bitcoin short squeeze was on July 23, just a day before the price hit a summer low.

The market is not in yet, but the setup looks like it is heading for a short-term bottleneck.

So is this the bottom of the market?

When bitcoin price is back at its lower bounds, is this the time to judge whether this could be the bottom of the market? While a Bitcoin bottom can never be located before it actually occurs, the $ 45,000 to $ 46,000 area appears to be the bottom, especially since it has acted as a strong support area for the past few weeks.

In the past, however, key BTC lows have been accompanied by panic speculation about high volumes. This has not yet happened, so the possibility of a lower floor is undeniable.

Source: Peter Brandt

Looking at the supply-demand dynamics, even though the price of BTC looks like supply is being cut, it still needs a major retail boost or retail FOMO to trigger serious price action.

On-chain indicators have given bullish signals, but since price action looks rather weak, unless BTC is pushing for $ 47,5,000, you’d better hold your horse.