Tick Tock, Impending Bitcoin Supply Shock

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Supply squeeze: that has been the topic of many of the past Daily Dives and it will be the topic today, because the underlying story remains the exact same.

Demand for an absolutely scarce, inelastic monetary asset continues to increase, supply is getting pulled off the market at feverish pace, and price isn’t reacting.

The market is finally starting to wake up. 

The BTC daily chart looks ripe for a monster breakout, with a lot of hot air above the $43,000 level.

On-chain volume tells a similar story, with little resistance above the $43,000 level, with a massive wall of UTXO distribution below. Following the months of accumulation in the range of $30,000 to $40,000, bitcoin has very strong support and it would most likely take a large meltdown in global equity markets for bitcoin to break the range low and fall below $29,000.