Bitcoin Exchange Supply Hits 5-Year Low as BTC Nears $38,000 Amid Bullish Market Moves

Bitcoin Exchange Supply Hits 5-Year Low as BTC Nears $38,000 Amid Bullish Market Moves

Crypto News – Bitcoin, the world’s preeminent cryptocurrency, has recently exhibited a bullish trend, with its exchange supply plummeting to levels not seen since 2017. In the past 24 hours, Bitcoin (BTC) has seen a robust 3% increase, nudging closer to the $38,000 threshold, thus amplifying its weekly gains to approximately 4.5%.

This market momentum is partially fueled by a significant migration of Bitcoin away from exchanges. On-chain analytics, particularly from platforms like Santiment, highlight a marked shift in Bitcoin holdings moving to self-custody – a trend reflecting a waning confidence in traditional exchanges. This shift comes in the backdrop of major exchange Binance settling a substantial $4.3 billion, while Coinbase faced scrutiny from the CFTC regarding its interactions with the derivatives trading platform Bybit.

In a parallel development, the aggregate holdings of the top 10 Tether exchange wallets have swelled to $15.23 billion, indicating the highest exchange buying power observed in the last 17 months.

Bitcoin’s performance throughout November has been notably strong, showcasing resilience even amidst fluctuating market conditions. Particularly intriguing is its recent alignment with the stock market, a convergence that has caught the eye of many analysts. Should Bitcoin continue to ascend independently of the stock market, it might signal a departure from the traditionally observed correlation between these two sectors, often a precursor to a bullish phase in the crypto realm.

In terms of price action, Bitcoin has impressively rebounded, surpassing the $38,000 mark. This resurgence is significant, especially considering the ongoing absence of a BTC Exchange-Traded Fund (ETF) approval and the recent regulatory challenges faced by major crypto exchanges like Binance and Kraken.

Data from TradingView indicates a shift in Bitcoin’s price trajectory. After a dip to $36,715 earlier in the week, Bitcoin rebounded, peaking at $38,315 before encountering resistance. Currently stabilizing around $37,900, it’s setting new support levels. While there’s potential for a push beyond $39,000, concerns about a downward trend breaching critical support around $35,600 linger.

Despite these market vicissitudes, PlanB, the progenitor of the stock-to-flow model, remains bullish, confidently stating that Bitcoin is unlikely to fall below the $35,000 mark again.