No Bitcoin (BTC) Left? Is Supply Shock Around Corner?

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Written By Maya Cantina

Mon, 4/03/2024 – 13:57

Cover image via www.freepik.com

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As Bitcoin continues its bull run, the community has raised an important concern: numerous platforms are reporting limitations on purchasing BTC.

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However, these concerns are unfounded, as community notes from Twitter (X) and confirmations from various sources have made it clear: Bitcoin remains available on CashApp, numerous over-the-counter (OTC) platforms and exchanges. There is no immediate supply shock, but what does this mean for Bitcoin’s future?

The notion of a Bitcoin supply shock stems from the cryptocurrency’s capped supply of 21 million coins, with over 18 million already mined and in circulation. The scarcity of Bitcoin is one of its most vaunted features, potentially leading to a supply shock where demand far exceeds the available supply, thus driving up the price.

BTCUSD
BTC/USDT Chart by TradingView

Yet, despite the scarcity, Bitcoin’s supply has not run dry. The infrastructure of OTC platforms, exchanges and peer-to-peer networks ensures that Bitcoin is still transactable. Moreover, the persistent demand, which is a positive sign of market health, continues to be met without the immediate fear of running out.

Reviewing Bitcoin’s price performance on the provided chart, the cryptocurrency has been on an uptrend, supported by strong buying interest. The chart reveals that Bitcoin has been consistently setting higher lows and higher highs — a bullish signal. The moving averages are aligned in an ascending order, with the short-term averages above the long-term ones, which typically suggests a bullish trend is in place.

Bitcoin’s recent price action shows a steep ascent, with the RSI nearing overbought territory. This indicates high demand and buying pressure but also signals traders to be cautious of potential pullbacks as the market may need to consolidate gains.

While the specter of a supply shock adds a thrilling narrative to Bitcoin’s story, the current market dynamics suggest that such an event is not on the immediate horizon. The “digital gold” remains within reach for those wishing to purchase, and its distribution channels are functioning as expected, even as demand surges.

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