Recent on-chain data indicates a significant outflow of Bitcoins from exchanges, potentially serving as a bullish catalyst. Reports highlight that the Bitcoin exchange supply has reached its lowest point in five years, dating back to 2017.

According to insights from the on-chain platform Santiment, the trend of Bitcoin moving into self-custody continues, indicative of a diminishing reputation for exchanges. Notably, Binance encountered a substantial $4.3 billion settlement last week, while Coinbase faced a CFTC subpoena related to its interactions with the derivatives trading platform Bybit.

Concurrently, the 10 largest Tether exchange wallets now collectively hold $15.23 billion, marking the highest level of exchange buying power in 17 months.

In a significant development, Bitcoin demonstrated positive performance throughout November, displaying notable resilience. Particularly noteworthy is its rapid alignment with the stock market in recent weeks.

Analysts are keenly observing if Bitcoin charts an independent upward trajectory without simultaneous movement in the stock market. Such a scenario could signify a departure from the established correlation between the two sectors. Historically, such divergences have often signaled the beginning of a bullish trend in the cryptocurrency market.

What’s Next for Bitcoin?

Bitcoin (BTC) has demonstrated resilience by bouncing back above the $38,000 threshold, reflecting the steadfast optimism of traders. This resilience is notable despite the absence of approval for a spot BTC Exchange-Traded Fund (ETF) and recent regulatory measures targeting cryptocurrency exchanges such as Binance and Kraken.

According to TradingView data, Bitcoin underwent a shift in price dynamics, hitting a low of $36,715 on Monday. Subsequently, a bullish reversal took place, propelling the leading cryptocurrency to a peak of $38,315 before facing resistance from bears.

Following a rejection at consistent highs within an elevated time frame range, the token is currently finding support around $37,900, establishing new support levels. A robust rebound could trigger a substantial upward movement in BTC prices, potentially surpassing $39,000 temporarily. However, concerns linger about a significant bearish movement that could breach the critical support zone around $35,600.

Despite market fluctuations, PlanB, the creator of the stock-to-flow model, remains confident, asserting that Bitcoin’s price is unlikely to dip below $35,000 again.

In another development, Franklin Templeton has submitted a revised S-1 to the Securities and Exchange Commission (SEC), seeking the SEC’s approval to launch a Bitcoin exchange-traded fund (ETF). This filing comes shortly after the SEC’s decision to postpone the consideration of the initial proposal.