Bitcoin (BTC) Price Eyes 20% Rally As Exchange Supply Drops to Six-Year Low
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- Reportedly, 25,305 Bitcoins worth $1.1 billion have been withdrawn from exchanges in 2 weeks.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 Reportedly, 25,305 Bitcoins worth $1.1 billion have been withdrawn from the exchanges in this time.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.
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.
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.
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026
- Bybit Lists Ripple’s RLUSD Following BlackRock and VanEck Integration
- SWIFT Plans Stablecoin and On-Chain Messaging Pilot on Linea, Challenging Ripple
- Breaking: U.S. PCE Inflation Rises To 2.7% YoY, Bitcoin Bounces
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
