People are HODLing Bitcoin and historically that has preceded big moves up

People have been HODLing bitcoin again over the last year and a half.

As I type, the active supply of bitcoin is sitting near 20 month lows according to research done by glassnode.

Check it out:

(Source: https://studio.glassnode.com/metrics?a=BTC&m=supply.Active5Y7Y&mAvg=0&s=1542844800&u=1592351999&zoom=)

Awesome, so people are HODLing Bitcoin, why does that matter?

I'm glad you asked!

On the surface this statistic doesn't mean much, but when you look at it from a historical context and see how bitcoin has behaved when the active supply has decreased like it has now, we can gain some valuable insights.

Historically, when the active supply has gone down like this, it has meant a big move up was soon to follow...

Check it out:

(Source: https://mcusercontent.com/45836f27729699cf7a484a367/files/7b462da8-b89b-40f0-a562-e10b41b35f53/Stack_Research_2_Jul_2020.pdf)

Pay special attention to the green zone followed by the beige zone...

As you can see the active supply tends to go up when bitcoin initially starts going up, but then it drops significantly before bitcoin really starts to go on parabolic portion of its move.

If this pattern were to play out again, and everything is setup for it , it could indicate that bitcoin is about ready to start the parabolic portion of this bull market.

Soon being relative term of course as it could be weeks or several months.

However, based on the above setup and based on previous patterns, it looks like bitcoin is all setup to go on a massive run at some point within the next 18 months or so as these trends tend to play out in 4 year cycles.

Stay informed my friends.

-Doc