Bitcoin Reserves on Exchanges Decline to Lowest Level Since 2018
News
The BTC price has languished in a tight consolidation phase for months now but recently managed to break above crucial support. The move above $40k was likely buoyed by the desire for institutions and individuals to pack their savings into an inflation-proof, stateless asset amid worsening geopolitical tensions in Europe.
Investors Maintain Holding Positions
According to crypto on-chain data provider Santiment, more investors are moving their BTC from exchanges and into cold storage. The platform highlighted that the amount of coins stored in centralized exchanges has plummeted to its lowest level since 2018. The Santiment analysis shows that the supply of BTC on exchanges has dropped by nearly 14% from two months ago, demonstrating how current macroeconomic factors and soaring inflation are prompting more investors to HOLD. Low BTC reserves on exchanges are typically bullish, as they indicate that market participants are unwilling to sell off their holdings at current prices. Another promising sign is that bitcoin has managed to hold its uptrend support despite worsening developments in Ukraine and a recent interest rate hike by the U.S. Fed.Where is the Bitcoin Price Action headed?
The BTC price is set to close the week with $40k support still in place despite increasing volatility that has dragged the price down from its recent high near $41,470. As to where the price trajectory heads next, analysts are unsure as to whether the price will go up or down. Per the latest market update from trading suite Decentrader, the drawn-out trend where BTC has made lower highs, and higher lows only has a few days left to run. The analysis shows that bitcoin is ready to make a sustained move in the coming days, ending its long consolidation phase. Decentrader’s analyst Filbfilb predicts that the leading crypto by martyr cap could dip towards the $37.5k support this weekend before making a “bigger move” next week. Despite the general negative sentiment in the crypto market, some analysts forecast a move higher for bitcoin in the near to mid-term. Trader Crypto Ed expects the current retracement to open the door for a strong bounce toward the target zone of $43k. However, the analyst still expects the BTC price action to undergo a few consolidatory cycles until the current trading range concludes. In a recent YouTube update, Crypto Ed reiterated that a break above $45k would be the signal for market participants to go long on bitcoin. Twitter trader Allen Au shared a similar bullish outlook on the BTC price trajectory, arguing that the king coin could soon exit its sideways price zone.“BTC is on the verge of breaking out to the upside as confirmed by technical indicators. It’s trading inside an Ascending Parallel Channel w/ resistance at $45K-$46K & support at $35K-$36K,” he tweeted.
