Bitcoin (BTC) Price Eyes $56,970 As Exchange supply Drops to Six-Year Low

In the past 48 hours, Bitcoin bulls have seized control following nearly a month of consolidation post the approval of the spot Bitcoin ETF. The Bitcoin price has surged by an extra 3.5% in the last 24 hours, reaching $46,063, with a market capitalization of $903 billion.

Bitcoin Exchange Supply At Six-Year Low

The strong surge in the Bitcoin price has also to do with the strong withdrawal of BTC from the exchanges in the last two weeks. Reportedly, 25,305 Bitcoins worth $1.1 billion have been withdrawn from the exchanges in this time.

Of notable significance is the lowest ratio of Bitcoin on exchanges since December 2017, indicating a trend of reduced Bitcoin holdings on trading platforms. This trend suggests a shift in investor behavior, with traders potentially opting for long-term holding strategies. Currently, only 5.3% of the total BTC supply is on exchanges as per the Santiment data. On the other hand, the Bitcoin whale accumulation has been on the rise over the past two weeks.

Furthermore, Bitcoin’s dominance in the cryptocurrency market has seen a significant uptick, overshadowing altcoins, with its market value reaching as high as $45.5K today.

On-chain Indicators Are Positive

Renowned crypto analyst Ali Martinez has provided insights into Bitcoin’s current price dynamics, indicating crucial support and resistance levels for the cryptocurrency.

According to Martinez, Bitcoin’s recent trading activity reveals a significant support level at $42,560, with approximately 1.02 million BTC transacting within this price range. Maintaining this support would be crucial to deciding Bitcoin’s future trajectory.

Conversely, Martinez highlights key resistance levels at $47,360 and $56,970, signaling potential barriers to Bitcoin’s upward trajectory.

Martinez also draws attention to the Super Trend indicator, which recently flashed a buy signal on Bitcoin’s monthly chart. This tool is renowned for its accuracy in predicting BTC bull markets, with past buy signals resulting in substantial gains.

Martinez points out that the four buy signals issued by the Super Trend indicator since Bitcoin’s inception have all been validated, leading to significant gains ranging from 828% to 169,172%. Another major indicator is that nearly 70% of Bitcoin holders have not moved their coins over the last year.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.