As Bitcoin dips back below $50,000, data is emerging of a possible short-term bearish outlook.
Bitcoin supply shock dynamics
Will Clemente, self-described as a “Lead Insights Analyst,” anticipates short-term bearish action for the Bitcoin price. This, he explains, is due to three factors – a drop in illiquid supply ratio, BTC inflows into exchanges, plus profit taking by whales following the break of $50,000 on Monday – a 14 week high.
I am short term bearish.
Drop in Illiquid Supply Ratio and coins moving onto exchanges. Also seeing some selling from whales. pic.twitter.com/nRhdB2GuSp
— Will Clemente (@WClementeIII) August 25, 2021
The analyst referred to the ratio of illiquid supply, which is a metric that falls under the remit of supply shock analysis. In turn, analysis of supply shock can be used to gauge investor intent, and therefore offers price predictive properties.
On-chain analyst Willy Woo documented the nuances involved in understanding supply shock. This inclu
