Papi
BTC - A Promising Narrative on Higher Timeframes
We look at countless charts with endless indicators and data hunting for answers, but don't forget the simple narratives. Inflows, outflows and supply look promising. Mean inflows over 1.5 represented capitulation events since 2018. This occurred 3 times, including June 2022. Historically it is followed by a consistent decline in inflows as Bitcoin's floor slowly climbs. On the other hand we have outflows (buyers). Since the June capitulation outflows remain above historic levels. This reflects a supply in downtrend, an all-new dynamic this cycle. Early stages of mass adoption among institutions, funds and with retail investors, are driving up the passive demand for Bitcoin to levels last seen in summer 2017 and in late 2015. Supply remains in a 2.5 year decline. Required note: the macroeconomic climate is injecting uncertainty and fear into markets. Crypto never faced market conditions as extreme as this. But data is data and it still reflects the market state of mind.