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A bode of confidence for bulls as Bitcoin supply on exchanges hits a 4-year low

A bode of confidence for bulls as Bitcoin supply on exchanges hits a 4-year low

In spite of the fact that Bitcoin (BTC) has seen major price adjustments in 2022, greater investor activity has been observed in the digital commodity.

The quantity of Bitcoin is gradually being removed from crypto exchanges as investors show signs of being content with their existing holdings, according to data from behavioral analysis platform Santiment on October 4.

Santiment noted:

“With less than 9% of BTC on exchanges for the first time since 2018, it is a good bode of confidence for bulls.”

BTC on exchanges hit a 4-year low. Source: Santiment

Due to the fact that Bitcoin’s supply on exchanges has dropped to another four-year low, the potential for a further market-wide selloff has been reduced.

Investors HODL Bitcoin

The ongoing crypto market volatility has pushed investors to adopt different approaches to maneuver the bearish environment, with investors appearing to be waiting for a possible market rally in the future by opting to HODL their Bitcoin. 

However, the balance of Bitcoin on crypto exchanges in late June was the lowest in three years, indicating that more people are pulling the coin off them and ‘hodling,’ as well as suggesting that preparations are on the way for a future bullish run, but this has not transpired and since then Bitcoin has fallen from above $21,000 to below $20,000.

Notably, Finbold also reported at the end of August, BTC deposits to exchanges hit a 2-year low. 

Bitcoin price analysis

Experts in the crypto industry are evaluating Bitcoin’s recent price action to predict its future moves as the cryptocurrency tries to maintain its position above the $20,000 barrier in the midst of bleak times in the cryptocurrency market and larger macroeconomic issues.

In this line, Eight Global, a cryptocurrency consulting platform, forecasted that Bitcoin would have “some bullish momentum” if the cryptocurrency were to rise over the $20,100 to $20,340 barrier zone.

Bitcoin price action analysis. Source: Eight Global

The consultancy platform also noted that:

“Looking at the overall price action for BTC, we can see that we are actually consolidating for quite some time now.”

Bitcoin is currently trading at $19,905 up 3.74% in the last 24 hours and down 1.23% across the previous seven days, with a total worth of $381 billion, as per CoinMarketCap data.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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