Bitcoin undergoes a surge in its 90-day active supply, indicating a Pre-2017 Bull Run Level
A new report that analyzes on-chain activity claims that Bitcoin (BTC) is now soaring for a bullish phase in the crypto asset’s future, because of its 90-day surge, based on supply movements.
According to a report published by Stack Funds, the digital asset manager, bitcoin ended Q2 2020 very impactfully, with holders planning to consolidate and adopt a long-term investment strategy.
BTC value to increase shortly
The report claims bitcoin is now soaring to pre-2017 bull run level, due to a surge in its 90-day active supply over the last quarter. This surge acts as an indicator for the sentiment cycle of coin holders. The report reads:
Prior to the 2017 and 2019 bull run, where Bitcoin hit $20,000 and $14,000 highs against the dollar, there was evidence of steep surges in the 90d % active supply […] These occurrences tend to peak for a window of 60 – 90 days, before Bitcoin’s induced price rally is realised.
The report further exclaims:
The data provides an indication of two folds. Firstly, the 90d % of Bitcoin active supply has tapered over the past 3 years, from 36% to 17%, suggesting that investors’ time horizon has lengthened as Bitcoin are held over longer periods in their wallets,” the report states
This uprising trend has only appeared again now, since its declining phase in March. Stack concluded;
As statistics have shown, a potential run-up in Bitcoin prices can be expected, which has yet to materialise, leading us to believe that the preceding rise in Bitcoin prices could happen sooner rather than later.
Investors’ hoarding assets for a potential price increase
The report also found a controversy. A general tapering in bitcoin’s 90-day active supply phase over the past three years was observed. It suggested that investors were holding BTC over longer periods.
The authors claimed it has become obvious that investors are hoarding money as,“accumulating the digital asset with expectations of a potential price increase.”