Coinspeaker
Bitcoin Price Rebounds Above $67k as Exchanges Reserves Drop to Multi-Year Low
After establishing a support level of around $65.5k in the past few days, Bitcoin (BTC) price briefly rallied above $69k on Thursday but had since stabilized at about $67k during the early London session on Friday. The flagship coin is gradually forming a bullish pennant ahead of this month’s halving.
Combined with the heightened demand from institutional investors, following the approval of several spot Bitcoin ETFs earlier this year, most experts believe a super cycle is at hand.
Bitcoin Supply on Crypto Exchanges Dwindles
According to on-chain data analysis conducted by CryptoQuant, Bitcoin supply on centralized exchanges has declined by more than 90,700 in the past month. Remarkably, Bitcoin’s supply on centralized exchanges is less than two million, despite the notable rise in leveraged trading.
The divergence in Bitcoin supply on exchanges has increased exponentially since early last year, thus indicating the bulls are in control.
Nonetheless, Glassnode has indicated that there is a notable increase in the transfer of Bitcoins traded on crypto exchanges from long-term holders to short-term traders. The short-term traders have increased their holdings by around 1.121 million from the long-term investors.
“Following a historical tightness in supply, the divergence between long and short-term holder supply has started closing, and as prices rise, and unrealized profits held by investors increase, it entices long-term holders to part with their holdings,” Glassnode analysts noted.
The notable decline in Bitcoin supply on exchanges is in line with the heightened demand from institutional investors through the recently approved spot BTC ETFs. Nonetheless, the daily Bitcoin dump from Grayscale’s GBTC, which is projected to end in July, has significantly weighed down heavily on the bullish sentiment.
Macro Fundamental Aspects
Bitcoin price has significantly outperformed traditional stock indexes and precious metals in the past few quarters, despite being left behind in the past few weeks. The anticipated interest rate cuts sometime this year have added to the Bitcoin bullish sentiment as more investors flee the short-term uncertainty on inflation.
Moreover, the United States is preparing to conduct its elections later this year, where a change of regime could be decided by the crypto-oriented votes.
Midterm Price Expectations
From a technical standpoint, Bitcoin price is aiming for a new all-time high in the near term. According to a Bitcoin price analysis by several analysts, the flagship coin has been forming an ascending triangle on the weekly time frame, following Thursday’s bullish rebound.
#Bitcoin has formed an ascending triangle on top of weekly support.
Break out, and we're looking at a target of $82,000. pic.twitter.com/7ABPdXpsE1
— Jelle (@CryptoJelleNL) April 4, 2024
However, Bitcoin’s dominance has been signaling a short-term reversal, after experiencing significant resistance around 54 percent. As a result, the altcoin industry could register a fresh rally before the parabolic bull run begins.
Bitcoin Price Rebounds Above $67k as Exchanges Reserves Drop to Multi-Year Low
