Bitcoin’s supply on exchanges has dropped to its lowest level since December 2021, now hovering around 942,000 coins as highlighted by Santiment, a top analytic firm. This significant reduction in available Bitcoin on exchanges typically indicates a lower risk of a major sell-off across the cryptocurrency market. Historically, when Bitcoin’s exchange supply dwindles, it suggests strong holding sentiment among investors, particularly among large holders or “whales.”
Meanwhile, the market is witnessing an interesting trend as Ethereum and Tether are making their way back onto exchanges. This influx suggests a shift in trader sentiment or perhaps preparation for potential trading opportunities.
As further noted by Daan Crypto, a top analyst, Bitcoin continues to trade above its bull market support band, which is rapidly rising; it forms a robust high-timeframe support level. If the price were to retest this band, it could act as a significant support level, reinforcing the current market structure.
Significantly, the activity of whales plays a crucial role in shaping Bitcoin’s market dynamics. According to Cryptoquant data, more than 20,000 Bitcoin flowed into whale wallets. This movement indicates that whales took advantage of a recent market correction to accumulate more Bitcoin. The strategic buying during dips showcases their confidence in Bitcoin’s long-term potential and market resilience.
Bitcoin Bullish Pennant Signals Potential Breakout to New All-Time High: ReportThe live Bitcoin price at press time stands at $67,658 with a 24-hour trading volume of $35,913,185,217. Over the last 24 hours, Bitcoin has seen a modest increase of 0.45%. The 1-day Relative Strength Index (RSI) reads 47.41, suggesting that the market is in a balanced state neither overbought nor oversold. This neutral RSI level often precedes a period of consolidation or a potential reversal, making it a crucial indicator to watch.
Additionally, the Moving Average Convergence Divergence (MACD) indicator shows the 1-day MACD trading below the signal line, with a reading of 501. This pattern could signal a possible shift in momentum towards a bearish direction if the trend continues.
