Despite the massive volatility in the crypto space, there have been all kinds of optimistic predictions about the price of Bitcoin these days.
Institutional money keeps pouring into the king coin, and mass adoption is also going great. We just reported that there are only a few days left until El Salvador will start recognizing BTC as a legal currency.
Bitcoin supercycle is in the cards
Analyst Will Clemente just said that there’s a BTC supercycle in the cards. This is due to the fact that long-term hodlers change the market structure of BTC.
He recently pointed out that the illiquid supply ratio, a metric that tracks the number of illiquid coins relative to overall BTC supply, has been in a strong uptrend.
This has been happening ever since Bitcoin recovered from the pandemic-induced panic last year.
“If I had to use one chart to argue that we are in a ‘Supercycle’ it would be this. Macro HODLing (hold on for dear life) behavior has shifted after March of last year. Makes a convincing case for the end of the 4-year cycle.”
BTC to continue to rally and reach new ATHs
A Bitcoin supercycle suggests that BTC will continue rallying and print fresh ATHs instead of entering a bear market.
Clemente said that long-term holders, or entities that have kept their BTC dormant for at least five months, are changing the narrative for this cycle.
“Structurally, this time actually is different. Long-term Bitcoin holders set the floor.”
Clemente also made sure to note that the number of coins that are owned by long-term holders was able to make a sharp recovery since the May 2021 crash and is now at an ATH.
At the moment of writing this article, BTC is trading in the red and the king coin is priced at $47,784.65. Stay tuned for more news from the crypto space.