- The world’s largest cryptocurrency, Bitcoin (BTC), has gained 3% in the last 24 hours, trading above $38,000.
- According to on-chain platform Santiment, the movement of Bitcoin supply to self-custody continues, reflecting a decline in the reputation of exchanges.
- At the same time, the top 10 Tether exchange wallets currently hold $15.23 billion, indicating the highest buying power for exchanges in 17 months.
While the Bitcoin price continues to strengthen above $38,000, reserves on exchanges have fallen to a 5-year low.
Bitcoin Price Rises as Exchange Reserves Decline
The world’s largest cryptocurrency, Bitcoin (BTC), has gained 3% in the last 24 hours, trading above $38,000. This extends BTC’s weekly gains to almost 4.5%. On-chain data shows that many Bitcoins are being withdrawn from exchanges, which could serve as a future bull catalyst.
Reports indicate that Bitcoin exchange supply has reached its lowest level since 2017. According to on-chain platform Santiment, the movement of Bitcoin supply to self-custody continues, reflecting a decline in the reputation of exchanges. Last week, Binance faced a major $4.3 billion settlement, while Coinbase received a call from the CFTC due to its relationship with the derivative trading platform Bybit.
At the same time, the top 10 Tether exchange wallets currently hold $15.23 billion, indicating the highest buying power for exchanges in 17 months. A notable development is that Bitcoin showed positive performance, demonstrating significant resistance throughout November, especially aligning quickly with the stock market in recent weeks.
Analysts observe that if Bitcoin forms an independent upward trend without synchronous movement with the stock market, it could signal a significant deviation from the established correlation between the two sectors. Historically, such a deviation has often signaled the beginning of a bull trend in the cryptocurrency market.
BTC Price Movement
Bitcoin (BTC) has risen above $38,000, maintaining a bullish stance among traders. This happened despite the lack of approval for the spot BTC Exchange-Traded Fund (ETF) and recent regulatory actions against cryptocurrency exchanges such as Binance and Kraken.
Current data shows a change in price dynamics; Bitcoin dropped below $36,715 on Monday, then experienced a bullish reversal, rising to $38,315 before facing resistance from bears. After regular rejections at high levels, the token is currently finding support around $37,900, establishing new support levels.
A strong recovery could lead to a significant upward movement in BTC prices, potentially surpassing $39,000 for a short period. However, there is concern about a significant bearish move that could potentially surpass the critical support zone around $35,600. Amidst these market fluctuations, the creator of the stock-to-flow model, PlanB, claimed that Bitcoin’s price is unlikely to fall below $35,000 again.
