As an experienced analyst, I believe that the current trend in Bitcoin (BTC) supply on cryptocurrency exchanges is a significant development indicative of increasing demand for the flagship digital asset. The fact that Bitcoin supply has dropped to its lowest level since December 2021 while Ethereum (ETH) and Tether (USDT) supplies have been increasing is an interesting dynamic.
The quantity of Bitcoin (BTC) held on cryptocurrency exchanges has reached a record low since late December 2021, as demand for the digital currency surges. Based on data from Santiment’s on-chain analysis, approximately 942k Bitcoins are currently being stored in exchange wallets, equating to around $64 billion in value.
Simultaneously, Santiment reported a gradual rise in the availability of Ethereum (ETH) and Tether (USDT). Normally, an uptick in exchange holdings signifies heightened selling pressure, while the opposite is true for a decrease in balances.
In simple terms, the rise in stablecoin quantities held on exchanges is often viewed as a sign of heightened purchasing demand, leading to a positive market outlook. Historically, stablecoins have functioned as a means for investors to withdraw funds during periods of intense cryptocurrency price swings.
Based on information from CryptoQuant’s on-chain analysis, over 20,000 Bitcoins have been amassed by large crypto investors, referred to as “whales,” within the previous 48 hours.
The significant increase in Bitcoin purchases by large crypto investors, or “whales,” has led to increased volatility in the market and forced some leverage traders to liquidate their positions. At the same time, El Salvador has been acquiring approximately 1 Bitcoin per day, along with continuing its mining operations, resulting in a holding of over 5,779 coins.
$BTC: Are whales still buying?
As an analyst, I’ve noticed that over 20,000 Bitcoins have been transferred into whale wallets. Yesterday’s correction in Bitcoin seems to have provided an opportunity for these large-scale investors to accumulate even more Bitcoins.
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— CryptoQuant.com (@cryptoquant_com) June 12, 2024
Direct Impact on Bitcoin Price Action
Over the past four months, Bitcoin’s price has stayed between the levels of $72,000 and $61,000. The leading cryptocurrency has witnessed a rise in its crypto market supremacy, which is now approximately 55.62%, since the beginning of last year.
The acceptance of Bitcoin ETFs in the US, Thailand, Hong Kong, and Australia has noticeably boosted optimistic attitudes towards Bitcoin. Additionally, the price of Bitcoin has remained close to its 2021 record high (ATH) for several months, exhibiting a distinct pattern compared to past significant bull markets.
Based on the analysis of cryptocurrency expert Captain Faibik, who is widely recognized in the field, Bitcoin’s price has been shaping a descending broadening wedge pattern on the daily chart. Nonetheless, this prominent figure in crypto predicts that for Bitcoin to advance, it must break through the resistance barrier around $72,000 and securely close above it within the next few weeks.
$BTC Descending Broadening Wedge on the Daily Timeframe Chart is Still in Play.
Bitcoin bulls need to clear the $71.3k Resistance to confirm the breakout.
Once the wedge breakout happens, the bulls’ party will start. 🔥📈#Crypto #Bitcoin #BTC
— Captain Faibik (@CryptoFaibik) June 13, 2024
Should Bitcoin’s large investors (referred to as “whales”) persist in their current high acquisition pace, there is a good chance that Bitcoin’s price will experience a bullish turnaround. In this scenario, the Bitcoin price is predicted to head toward the next intermediate objective, which ranges from $80,000 to $86,800. This target aligns with the 0.5 and 0.618 extensions of the weekly Fibonacci sequence.
Bigger Picture
Institutional investors’ growing preference for Bitcoin implies greater market fluidity for the altcoin sector. Consequently, the upcoming altcoin season may exhibit more intensity and unpredictability than past bull markets.
The latest green light given to a spot Ethereum ETF in the US and Hong Kong markets hints at potential approval for similar offerings based on other cryptocurrencies. Furthermore, this development makes it simpler for an increased number of investors to enter the crypto market in the short term.
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2024-06-13 14:55