The largest cryptocurrency Bitcoin (BTC) has gained 3% in value in the last 24 hours, approaching $38,000 and showing renewed strength. As a result, BTC’s weekly gains have risen to approximately 4.5%. While these price developments occur, the supply of Bitcoin on cryptocurrency exchanges has also reached its lowest level in six years.
Bitcoins Are Moving Away from Cryptocurrency Exchanges
On-chain data indicates a significant number of BTC are leaving cryptocurrency exchanges, which could potentially serve as a bullish catalyst for future growth. Reports reveal that the supply of Bitcoin on cryptocurrency exchanges is at its lowest in six years. According to the on-chain data platform Santiment, investors continue to move their BTC to self-custody.
The decline in Bitcoin supply on cryptocurrency exchanges is primarily attributed to the eroding reputation of these exchanges. Notably, Binance faced a massive $4.3 billion settlement in the US last week. Following this historic settlement, Coinbase received a court subpoena from the US Commodity Futures Trading Commission (CFTC) due to various collaborations with the derivatives trading platform Bybit.
Furthermore, on-chain data shows that the top 10 Tether (USDT) cryptocurrency exchange wallets currently hold $15.23 billion, indicating that the purchasing power of these exchanges is at its highest level in 17 months.
Throughout November, Bitcoin has exhibited a positive performance, showing notable resilience. The rapid withdrawal of the crypto king from exchanges is especially intriguing. Analysts suggest that if BTC supply diverges from the established correlation with exchange inflows and the price charts an independent upward trajectory, it could signal a significant deviation. Historically, such a divergence has often been an indicator of the start of a strong bullish trend in the cryptocurrency market.
Bitcoin Price Analysis
Bitcoin has once again approached the $38,000 level, indicating that control remains with investors anticipating a rise. This occurs despite the lack of approval for a spot Bitcoin exchange-traded fund (ETF) in the US and recent regulatory actions targeting cryptocurrency exchanges such as Binance and Kraken.
From a technical standpoint, BTC’s price has retracted from $38,315 and dropped to $36,715 on the first day of the week. After consistently retracting from the higher time frame ranges, the price of the largest cryptocurrency is currently around $37,900 and appears to be establishing new support levels. The current recovery could lead to a significant upward movement in BTC and potentially push the price beyond $39,000. On the other hand, a drop below the $35,600 support level could result in control shifting to sellers.
- Bitcoin shows strength amid exchange withdrawals.
- On-chain data highlights shift to self-custody.
- Price analysis suggests bullish momentum potential.