A bid for confidence for bulls as Bitcoin supply on exchanges hits four-year low
Despite Bitcoin (BTC) seeing major price corrections in 2022, greater investor activity has been observed in the digital commodity.
The amount of Bitcoin is gradually being removed from crypto exchanges as investors show signs of being satisfied with their existing holdings, according to data from platform for behavioral analysis Sentiment on 4 October.
Santiment noted:
“With less than 9% of BTC on exchanges for the first time since 2018, there is good confidence for bulls.”
Due to the fact that Bitcoin’s supply on exchanges has fallen to another four-year low, the potential for a further market-wide selloff has diminished.
Investors HODL Bitcoin
The ongoing volatility in the crypto market has pushed investors to adopt different approaches to maneuver the bearish environment, with investors looking to wait for a possible market rally in the future by choosing to HODL their Bitcoin.
However, the balance of Bitcoin on crypto exchanges at the end of June was the lowest in three years, indicating that more people are pulling the coin from them and “hoarding”, as well as suggesting that preparations are underway for a future bullish run, but this has not happened , and since then Bitcoin has fallen from over $21,000 to under $20,000.
Notably, Finbold also reported in late August that BTC deposits to exchanges hit a 2-year low.
Bitcoin price analysis
Crypto industry experts are evaluating Bitcoin’s recent price action to predict future moves as the cryptocurrency tries to maintain its position above the $20,000 barrier amid gloomy times in the cryptocurrency market and larger macroeconomic issues.
Along these lines, Eight Global, a cryptocurrency consulting platform, predicted that Bitcoin would have “some bullish momentum” if the cryptocurrency were to rise above the $20,100 to $20,340 barrier zone.
The consulting platform also noted that:
“Looking at the overall price action for BTC, we can see that we are actually consolidating for a while now.”
Bitcoin is currently trading at $19,905, up 3.74% over the past 24 hours and down 1.23% over the past seven days, with a total value of $381 billion, according to CoinMarketCap data.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
