Bitcoin Still Far From A True Supply Shock, Analyst Explains
Bitcoin (BTC) is not experiencing a true supply shock, according to on-chain metrics analyzed by Carmelo Aleman. Despite a 15.35% decline in reserves on centralized exchanges from 2,942,077 BTC in November to 2,490,318 BTC in April, genuine supply scarcity is unlikely in the near term. Bitcoin's Realized Capitalization increased from $669.32 billion to $883.03 billion, indicating rising investment rather than speculation. A purchase of 500,000 BTC could push prices to $130,000–$140,000, but this would likely lead to selling pressure from miners. A significant influx of capital is needed for a true supply shock. Technical indicators suggest a potential bullish rally, with Bitcoin's weekly Relative Strength Index (RSI) breaking a downward trendline. Short-term holders are holding onto their BTC, indicating growing investor confidence. Currently, BTC trades at $94,374, down 0.4% in the last 24 hours.
