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- Bitcoin exchange balances have hit a five-year low, driven by significant outflows from major crypto exchanges like Binance and Coinbase.
- The reduction of supply in crypto exchanges could lead to high demand leading to Bitcoin’s price surging towards $70,000.
Bitcoin (BTC) appears to be on the prick of a significant surge with Bitcoin balances on exchanges hitting a five-year low. According to recent data, the total balance on exchanges is below 2.3 million BTC, a level last witnessed in March 2018.
This significant drop has been driven primarily by substantial outflows from major exchanges including Binance and Coinbase. This trend has shown a change in investor sentiment towards long-term holding tactics. This trend could point towards a bullish phase for Bitcoin, with the king of crypto surging up to $70,000 at the time of writing.
Over the past year, Binance, the biggest crypto exchange by market volume, has experienced significant withdrawals. Correspondingly, Coinbase has also recorded substantial outflows with a notable 16,000 BTC moved in a single day. These large outflows indicate large activity from whales moving their digital assets to private wallets. This move indicates that investors are looking forward to future price surges thus less possibilities for selling their holdings on exchanges.
The movement of Bitcoin assets from exchanges to private wallets will lead to the scarcity of BTC tokens in circulation. When the supply on exchanges decreases, it can create an upward pressure on prices supposing demand rises or remains constant. The concept of supply and demand is a crucial aspect of market economics, a low supply but high demand for assets will lead to an increase in price.
Bitcoin (BTC) Technical Analysis
At the time of writing, Bitcoin was trading at $69,800.00 marking a 2.46% surge and a 105% surge in trading volume in the last 24 hours. The current market sentiment appears to be gearing towards a bullish outlook for Bitcoin.
No coins selectedTechnical indicators are suggesting a rather mixed but cautiously optimistic outlook. The $68,000 mark is an essential point in determining 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 at 46.62, indicating a neutral trend. Additionally, the 50-day Exponential Moving Average (EMA) is currently at $68,000, aligning with the pivot point. The presence of a double bottom pattern near the $66,650 mark suggests potential for a bullish leap, which could further drive Bitcoin’s price upward.
Investors are advised to have a closer look at the $68,000 pivotal mark. A breakthrough above this level could signal a bullish trend for Bitcoin pushing the next resistance level at $69,000. However, if BTC doesn’t manage and goes beyond the mark, it may struggle to surpass the $67,800 level due to current bearish indicators such as the 50-day EMA and the RSI.
Chances for a bullish trend are coming close with major exchanges experiencing significant outflows and a reduction in Bitcoin’s balance on exchanges to levels only seen in 2018. Bitcoin whales moving their digital gold to private wallets minimizes the supply leading to chances of price surges. While technical indicators show a mixed but rather cautious outlook, the overall market sentiment drives to a bullish outlook with prices surging to a possible $72,000.
