The recent figures show that the exchange balances remain at the lowest level since March 2018 at 2.3 million Bitcoin. This significant reduction, mainly due to massive withdrawals from Binance and Coinbase indicates a shift towards believing in long-term investment strategies.
The large aggregated balance of bitcoins from these addresses indicates that the move of assets from these ‘whales’ to private wallets implies certain expectations of future surges in price.
The current situation has produced buying pressure toward Bitcoin; investors are more optimistic about the volatility in the next few minutes.
Bitcoin Exchange Reserves Drop to a Five-Year Low, Net Outflows From Coinbase & Binance
The cryptocurrency’s stock decreased to 2.075 million as of December 16, the lowest since March of the previous four years. 3 million BTC, driven by large-scale exits from major platforms like Binance and consequently Coinbase, reflecting a shift to long-term strategies.
Binance, which has had the highest Bitcoin reserves in the recent past, has recently seen its balances slashed, while Coinbase faced one of the largest outflows in 2024 with around 15,750 Bitcoins moved in a single day.
This is a natural tendency that so-called “whales,” or entities with large holdings of Bitcoin, transfer their coins to private wallets in preparation for a future price increase.
Bitcoin (BTC/USD) Technical Analysis Update: Party Proposal for July 2, 2024
On the 4-hour Bitcoin price index, the digital currency is currently trading at $67,731, with the pivot point set at $68,000, thus, a bearish outlook on Bitcoin will persist as long as the bitcoin price dominates below the $68,000 mark.
Main interfering levels in the upward direction are found at $69,000, $70,600, and $71,000, The primary intervention levels for support are located at $66,650, followed by $65,950 and $65,150 in the downward trend.
The RSI is showing a level of 46.62, indicating that future trends are average, and the 50-Day Exponential Moving Average (EMA) is also equivalent to the pivot at $ 68,000. Furthermore, the BTC price remains afloat around the $66,650 level, supported by an ascending triangle and double-bottom pattern.
A bullish bounce is normally initiated by the double bottom pattern; a feature that was highlighted with Bitcoin holding its ground around the $67,750 level.
For now, the BTC/USD pair is trading just below $68,000, below the 50-day EMA, so a breakout of this level might open up the way toward targeting the $69,000 psychological level and perhaps more.
However, the 50-day EMA and RSI hinted at bearish trends in Bitcoin as the $67,800 seemed to pose a sort of resistance as the recent formation of doji and spinning top candles indicated signs of fatigue and uncertainty among investors.
At the moment, it is important to focus on recognizing the support level at $68 000, below which the bearish market trend is most probably sustainable and above which there are chances to shift to the bullish trend.
Note: This article provides only information; traders can do there own research before investing in crypto.
