Beware: BTC Price Jumps 2% But Bitcoin Exchange Deposits Increase
The world’s largest cryptocurrency Bitcoin (BTC) has registered a 2% jump in the last 24 hours with the BTC price trading at $26,332 and a market cap of $512 billion. This is quite a breather as the asset continued to face massive selling pressure over the last few weeks.
However, this price jump could turn into a sell-the-rise opportunity as suggested by the surge in the exchange deposits. On-chain data provider Santiment reported that the exchange supply for Bitcoin has reached a two-week high. Reportedly, over 5,000 Bitcoins worth a staggering $128.5 million have been sent to the exchanges over the last 24 hours.
Bitcoin has seen a modest 2% price increase, reaching $26.3K once again after a week. It’s important to monitor the supply of BTC on exchanges, which has grown by 3.1% in the past two weeks. Traders seem to be driven by the desire to secure modest profits, added Santiment.
However, after the recent bounceback, $26,000 remains a key level to watch for investors. So far, the BTC price has been forming a double-top pattern indicating further pain ahead. However, if the BTC price manages to hold above the $26,000 mark, the double-top theory shall remain invalidated.
If #BTC holds ~$26,000 then the Double Top will simply NOT be validated
Let's see how the Weekly Closes$BTC #Crypto #Bitcoin pic.twitter.com/5jsVQ8GLfr
— Rekt Capital (@rektcapital) September 7, 2023
BTC Price Correction Possibility
On the downside, the $25,500 remains as an important support level for Bitcoin. Bitcoin is exactly playing the textbook move that it does a few months before halving. Historically, August and September have been periods of major pain for Bitcoin in the year before halving.
Popular crypto analyst Stack Hodler explains: “We’re approaching the conclusion of a significant debt cycle, and governments will persist in devaluing currencies to meet their nominal debt obligations”.
Assets with finite supplies that are immune to confiscation and devaluation will excel in the long term. For instance, consider #Bitcoin, which has surged by +342% since the onset of the Covid fiat surge.
On the contrary, assets susceptible to seizure and devaluation will fare poorly. Take sovereign debt as an example, with TLT down -43% since the Covid outbreak, the analyst added.
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