Bitcoin exchange balances have reached a record low, as major crypto exchanges like Binance and Coinbase have seen a significant outflow of funds. This decrease in supply on exchanges could lead to a surge in demand, potentially driving Bitcoin’s price up to $70,000.
The current data shows that the total balance of Bitcoin on exchanges is now below 2.3 million BTC, a level that hasn’t been seen since March 2018. This drop in balance is primarily due to large outflows from major exchanges such as Binance and Coinbase. It seems that investors are shifting their strategies towards long-term holding, which could be a bullish sign for Bitcoin.
In the past year, Binance, the largest crypto exchange by market volume, has experienced substantial withdrawals. Similarly, Coinbase has also seen significant outflows, with 16,000 BTC being moved in a single day. These large outflows indicate that whales, or large-scale investors, are transferring their digital assets to private wallets. This suggests that these investors are anticipating future price surges and are less likely to sell their holdings on exchanges.
This movement of Bitcoin assets from exchanges to private wallets will result in a scarcity of BTC tokens in circulation. When the supply on exchanges decreases, it can create upward pressure on prices if demand rises or remains steady. Supply and demand are fundamental concepts in market economics, and a low supply with high demand typically leads to an increase in price.
As of now, Bitcoin is trading at $69,800.00, showing a 2.46% surge and a 105% surge in trading volume in the last 24 hours. The current market sentiment seems to be leaning towards a bullish outlook for Bitcoin.
Technical analysis indicates a mixed but cautiously optimistic outlook. The $68,000 mark is a crucial level to watch as it will determine the short-term price for BTC. Immediate resistance levels are identified at $70,600 and $73,000, while support levels are at $66,650, $65,950, and $65,150.
The Relative Strength Index (RSI) is currently at 46.62, indicating a neutral trend. Additionally, the 50-day Exponential Moving Average (EMA) is at $68,000, aligning with the pivot point. The presence of a double bottom pattern near the $66,650 mark suggests the potential for a bullish leap, which could further drive Bitcoin’s price upwards.
Investors are advised to closely monitor the pivotal mark of $68,000. A breakthrough above this level could indicate a bullish trend for Bitcoin, pushing the next resistance level at $69,000. However, if BTC fails to surpass this mark, it may struggle to go beyond the $67,800 level due to bearish indicators like the 50-day EMA and the RSI.
With major exchanges experiencing significant outflows and a decrease in Bitcoin’s balance on exchanges to levels last seen in 2018, the chances of a bullish trend are increasing. Whales moving their Bitcoin to private wallets reduces the supply and increases the potential for price surges. While technical indicators present a mixed but cautious outlook, the overall market sentiment leans towards a bullish outlook, with prices potentially surging to $72,000.
