Key Points
- The supply of Bitcoin (BTC) on crypto exchanges has hit a multi-year low due to increased demand.
- Crypto whale wallets have accumulated more than 20K Bitcoins in the past 48 hours.
The availability of Bitcoin (BTC) on cryptocurrency exchanges has reached its lowest point since December 2021 due to increased demand.
This information comes from on-chain data analysis by Santiment, which shows that Bitcoin supply on exchanges has fallen to approximately 942k coins, valued at around $64 billion.
Increased Supply of Ethereum and Tether
Santiment’s data also shows a gradual increase in the supply of Ethereum (ETH) and Tether (USDT) on exchanges. Typically, an increased balance on exchanges signifies increased selling pressure and vice versa.
However, a rise in the supply of stablecoins on exchanges is seen as an increase in overall buying pressure, indicating a bullish sentiment. The stablecoin industry has previously been used as an exit strategy from high cryptocurrency volatility.
CryptoQuant’s on-chain data analysis reveals that more than 20K Bitcoins have been accumulated by crypto whale wallets in the past 48 hours.
This surge in Bitcoin accumulation by crypto whales has led to increased volatility and liquidation for leverage traders. Meanwhile, El Salvador continues to buy 1 Bitcoin per day in addition to its mining operations, now holding over 5,779 coins.
Impact on Bitcoin Price
The price of Bitcoin has been fluctuating between $72K and $61K over the past four months. The leading cryptocurrency has seen its market dominance gradually increase to about 55.62% since the start of last year.
The approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, Thailand, Hong Kong, and Australia has significantly boosted bullish sentiments. Bitcoin’s price has hovered around 2021’s all-time high (ATH) during the past few months, a pattern that differs from previous major bull cycles.
According to a well-known crypto analyst, Captain Faibik, Bitcoin’s price has been forming a descending broadening wedge on the daily timeframe. The analyst suggests that for a positive trend to continue, the Bitcoin price against the US dollar must consistently close above the resistance level of around $72K in the coming weeks.
If the high accumulation rate by Bitcoin whales continues as observed recently, the likelihood of a bullish reversal will significantly increase. If this happens, Bitcoin’s price could aim for the next midterm target of between $80K and $86.8K, which aligns with the 0.5 and 0.618 weekly Fibonacci Extension.
The Bigger Picture
The increased adoption of Bitcoin by institutional investors indicates higher liquidity for the altcoin industry, suggesting that the impending altseason could be more intense than previous bull cycles.
Moreover, the recent approval of spot Ethereum ETFs in the United States and Hong Kong signals a possible approval of similar products for other altcoins. This development could enable more investors to invest in the cryptocurrency industry in the near term.
