Bitcoin (BTC) Price Jumps to $38,000 As Exchange Supply Drops to 5-Year Low
The world’s largest cryptocurrency Bitcoin (BTC) makes strong moves gaining 3% and moving closer to $38,000 in the last 24 hours. With this, the BTC price extends its weekly gains to nearly 4.5%.
Massive Bitcoins Moving Off Exchanges
On-chain data shows that a large number of Bitcoins have been moving off exchanges, which could serve as a bullish catalyst going ahead. Reports suggest that the Bitcoin exchange supply has dropped to its lowest in five years, since 2017.
According to the on-chain platform Santiment the movement of Bitcoin supply into self-custody continues, reflecting a decline in exchange’s reputation. Binance faced a massive $4.3 billion in settlement last week while Coinbase received a subpoena from CFTC over its dealings with derivatives trading platform Bybit.
Simultaneously, the 10 largest Tether exchange wallets now hold $15.23 billion, marking the highest level of exchange buying power in 17 months.
In a noteworthy development, Bitcoin exhibited positive performance throughout November, showing notable resilience. Of particular interest is its swift convergence with the stock market in recent weeks.
Analysts observe that if Bitcoin charts an independent upward trajectory without synchronous movement in the stock market, it could signal a significant departure from the established correlation between the two sectors. Historically, such a divergence has often been indicative of the onset of a bullish trend in the cryptocurrency market.
BTC Price Action
Bitcoin (BTC) has rebounded above the $38,000 mark, showcasing resilience among traders who maintain a bullish stance. This comes despite the absence of approval for a spot BTC Exchange-Traded Fund (ETF) and recent regulatory actions targeting cryptocurrency exchanges like Binance and Kraken.
TradingView data reveals a shift in price dynamics, with Bitcoin experiencing a low of $36,715 on Monday, followed by a bullish reversal that saw the leading cryptocurrency reaching a peak of $38,315 before encountering resistance from bears.
Following a rejection at consistent highs in an elevated time frame range, the token is currently finding support around $37,900, establishing new support levels. A robust rebound could lead to a substantial upward movement in BTC prices, potentially pushing it beyond $39,000 temporarily. However, there is a concern about a significant bearish movement that could occur, potentially breaching the critical support zone around $35,600.
Amidst these market fluctuations, PlanB, the creator of the stock-to-flow model, confidently asserted that Bitcoin’s price is unlikely to dip below $35,000 again.
🚨BREAKING: Bitcoin valuation based on difficulty (hashrate) increased to $35k yesterday. IMO this could mean that, apart from possible black swans or short term volatility, based on $/kWh-arbitrage fundamentals … BTC will never go below $35k ever again. pic.twitter.com/JPLkXieQAP
— PlanB (@100trillionUSD) November 27, 2023