Bitcoin (BTC) Price Eyes 20% Rally As Exchange Supply Drops to Six-Year Low

The Bitcoins available on exchanges has dropped to its lowest level since December 2017. Presently, only 5.3% of the total Bitcoin supply is held on exchanges.
By Bhushan Akolkar
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Highlights

  • Reportedly, 25,305 Bitcoins worth $1.1 billion have been withdrawn from exchanges in 2 weeks.
  • BTC Price has significant support level at $42,560 where 1.02 million coins have transacted.
  • Nearly 70% of Bitcoin holders haven't moved their coins in six years.

In the past 48 hours, Bitcoin bulls have seized control following nearly a month of consolidation post the approval of the spot Bitcoin ETF. The Bitcoin price has surged by an extra 3.5% in the last 24 hours, reaching $46,063, with a market capitalization of $903 billion.

Bitcoin Exchange Supply At Six-Year Low

The strong surge in the Bitcoin price has also to do with the strong withdrawal of BTC from the exchanges in the last two weeks. Reportedly, 25,305 Bitcoins worth $1.1 billion have been withdrawn from the exchanges in this time.

Of notable significance is the lowest ratio of Bitcoin on exchanges since December 2017, indicating a trend of reduced Bitcoin holdings on trading platforms. This trend suggests a shift in investor behavior, with traders potentially opting for long-term holding strategies. Currently, only 5.3% of the total BTC supply is on exchanges as per the Santiment data. On the other hand, the Bitcoin whale accumulation has been on the rise over the past two weeks.

Courtesy: Santiment

Furthermore, Bitcoin’s dominance in the cryptocurrency market has seen a significant uptick, overshadowing altcoins, with its market value reaching as high as $45.5K today.

On-chain Indicators Are Positive

Renowned crypto analyst Ali Martinez has provided insights into Bitcoin’s current price dynamics, indicating crucial support and resistance levels for the cryptocurrency.

According to Martinez, Bitcoin’s recent trading activity reveals a significant support level at $42,560, with approximately 1.02 million BTC transacting within this price range. Maintaining this support would be crucial to deciding Bitcoin’s future trajectory.

Conversely, Martinez highlights key resistance levels at $47,360 and $56,970, signaling potential barriers to Bitcoin’s upward trajectory.

Martinez also draws attention to the Super Trend indicator, which recently flashed a buy signal on Bitcoin’s monthly chart. This tool is renowned for its accuracy in predicting BTC bull markets, with past buy signals resulting in substantial gains.

Courtesy: Ali Martinez

Martinez points out that the four buy signals issued by the Super Trend indicator since Bitcoin’s inception have all been validated, leading to significant gains ranging from 828% to 169,172%. Another major indicator is that nearly 70% of Bitcoin holders have not moved their coins over the last year.

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Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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