The optimism of Bitcoin miners and HODLers is still not enough to save the price

The turmoil in Bitcoin with red lights has continued for the past 2 weeks. After a feigned recovery, the price fell again below the $ 46,000 mark on December 20. However, this morning the crypto king bounced back to the $ 48,000 area and is now trading at $ 48,490, up more than 3.5% over the past 24 hours. Accordingly, the global market capitalization of cryptocurrencies rose by almost 1%.

With the macrostructure still facing the bulls, how will BTC perform with just a few days of the year?

BTC price 4-hour chart | Source: Tradingview

HODLer and Bergmann set sail to catch the wind

After declining on December 16, bitcoin miners’ earnings have rebounded while their unspent offer is just 500 BTC below its all-time high. These coins were issued as block bonuses, but were never issued in the chain.

In particular, miners have started HODLing significantly more BTC since March 2020, and the trend has been showing an upward trend since November, such as Bitcoin magazine reported.

Additionally, BTC’s illiquid supply (total supply held by illiquid entities) is one of the notable metrics in 2021 after the May slump.

Remarkably, these HODLers were the first to pile up again. At the time of writing, the growth rate of an illiquid supply is 3.4 times the coin issue.

Illiquid Supply and Issue Rate | The source: TXMC

Overall, 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. The last Bitcoin short squeeze took place on July 23, just a day before the price hit a summer low.

The market has not yet signaled this, but it appears to be heading towards it.

So is this the bottom of the market?

As Bitcoin finds lower boundaries again, is this the right time to estimate the bottom of the market? While a Bitcoin low has never been noted before it actually occurred, the $ 45,000-46,000 area appears to be the low, especially since it has acted as a strong support area for the past few weeks. .

In the past, however, BTC’s major lows have been accompanied by panicked surrender at high volumes. This has not yet happened, so the possibility of a lower floor is undeniable.

The 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 big retail boost or retail FOMO to trigger drastic price action.

On-chain indicators have given many bullish signals, but since the price movement looks rather weak, it would be better to be patient unless BTC breaks the $ 47,500 mark.

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