BTC Pumps 8% Above $22,000 With Bitcoin Exchange Supply Continuously Dropping

In the last 24-hours, the world’s largest cryptocurrency Bitcoin has registered a major bounce back! As of press time, Bitcoin is trading 8% up at a price of $22,108 and a market cap of $422 billion.

While Bitcoin has been under major selling pressure over the last three months, the supply of Bitcoin at the exchanges has been on a decline. As on-chain data provider Santiment reported:

Bitcoin dominance is back on the menu on a healthy Thursday price surge. We’ve seen $BTC continue to moving from exchanges for nearly 4 years, and this trend hasn’t stopped even with the 8-month price retrace. Meanwhile, $USDT buying power is rising.

While the on-chain indicators are hinting at a bullish momentum, we need to see what the technicals have to say. On the four-hour technical chart, Bitcoin (BTC) has faced a rejection at 200 EMA and this could very much turn out to be a dead cat bounce.

#bitcoin getting rejected at 200 EMA on the 4 hour. pic.twitter.com/oBApXNWgMT

— Lark Davis (@TheCryptoLark) July 8, 2022

Why It’s A Good Time to Buy Bitcoin?

Analysts have been arguing that for long-term holders, it could be the right time to add BTC to their kitty. One can continue to do dollar-cost-averaging (DCA) in BTC if they are willing to hold for a period of four years and more.

Jordan Belfort, popular as the Wold of Wall Street recently shared his optimistic view on Bitcoin. He said:

If you take a three or maybe five-year horizon, I would be shocked if you didn’t make money because the underlying fundamentals of Bitcoin are really strong.

On the other hand, Bloomberg’s senior commodity strategy Mike McGlone said that Bitcoin could kickstart one of the great bull runs in history during the second half of 2022. He also added that the Bitcoin adoption is likely to grow further.

The Bloomberg strategist also added that the downside for Bitcoin and crypto looks limited from the current levels. He said: “The about 80% drawdown in the Bloomberg Galaxy Crypto Index is indicative of limited further downside and the proliferation of crypto dollars”.

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.