Bitcoin Supply on Exchanges Drops to 7.53% Lowest Since 2018

Bitcoin’s supply on exchanges has decreased to 7.53%, marking its lowest level since February 2018. This reduction in supply indicates a shift in investor sentiment, with more individuals choosing to hold their Bitcoin rather than sell it. The decrease in exchange supply reflects growing confidence in Bitcoin’s long-term value and potential, as fewer investors are willing to part with their holdings. This trend suggests that the market is experiencing reduced liquidity, which could lead to heightened volatility as demand surpasses supply.

The decline in Bitcoin’s exchange supply is accompanied by increased network activity, further supporting the notion of a bullish phase. Active addresses on the Bitcoin network have risen by 1.16%, reaching 10.17 million. This increase in active addresses indicates that more users are interacting with the Bitcoin network, whether by sending or receiving funds. Additionally, the transaction count has increased by 0.74%, totaling over 418,000 transactions. This heightened network activity suggests that more individuals are becoming involved in Bitcoin, which could lead to higher demand and upward price pressure.

Technical indicators also provide encouraging signs for Bitcoin’s potential breakout. At the time of reporting, the Fibonacci retracement levels suggested that Bitcoin has found support at the 0.236 level, around $81,325. Furthermore, the Relative Strength Index (RSI) was at 51, indicating that Bitcoin is neither overbought nor oversold. This suggests that Bitcoin still has room to move in either direction, with a potential breakout on the horizon if it continues to hold above key support levels.

The liquidation data for Bitcoin shows that long and short liquidations are nearly equal, with $3.65 million in long liquidations and $3.56 million in short liquidations. This balance suggests that the market is in equilibrium, with both optimistic and cautious traders adjusting their positions. The balanced liquidations point to an equilibrium in the market, awaiting the next major price movement.

In conclusion, the low supply of Bitcoin on exchanges, rising network activity, and promising technical indicators suggest that Bitcoin could be entering a new bullish phase. The growing number of holders, combined with key support levels, points to upward momentum. Therefore, it is likely that Bitcoin will continue to see positive price action, although short-term volatility could still impact the market.