Bitcoin (BTC), the largest cryptocurrency globally, demonstrates robust momentum, surging by 3% in the past 24 hours and edging closer to the $38,000 mark. This latest move extends BTC’s weekly gains to almost 4.5%.
Large Amounts of Bitcoin Shifting Away from Exchanges
On-chain data reveals a significant shift of Bitcoins away from exchanges, potentially serving as a bullish catalyst in the near future. Recent reports indicate that the supply of Bitcoin on exchanges has reached its lowest point in five years, dating back to 2017.
Santiment, an on-chain platform, highlights the ongoing trend of Bitcoin supply moving into self-custody, indicative of a diminishing trust in exchanges. Notably, Binance encountered a substantial $4.3 billion settlement last week, and Coinbase faced a subpoena from the CFTC regarding its interactions with the derivatives trading platform Bybit.
Concurrently, the ten largest Tether exchange wallets currently hold $15.23 billion, representing the highest level of exchange buying power in 17 months.
In a significant development, Bitcoin demonstrated strong performance throughout November, displaying remarkable resilience. Of particular note is its rapid alignment with the stock market in recent weeks.
Analysts note that if Bitcoin follows an independent upward path without concurrent movements in the stock market, it may signify a notable deviation from the usual correlation between the two sectors. Historically, such a divergence has frequently signaled the beginning of a bullish trend in the cryptocurrency market.
Bitcoin (BTC) Price Movement
Bitcoin (BTC) has surged back above the $38,000 threshold, showcasing the resilience of traders who maintain a bullish outlook. This resilience is evident despite the lack of approval for a spot BTC Exchange-Traded Fund (ETF) and recent regulatory actions targeting cryptocurrency exchanges such as Binance and Kraken.
According to TradingView data, there has been a shift in price dynamics, with Bitcoin hitting a low of $36,715 on Monday. Subsequently, a bullish reversal occurred, propelling the leading cryptocurrency to a peak of $38,315 before facing resistance from bears.
After encountering rejection at consistent highs within an extended time frame range, the token is currently finding support around $37,900, establishing new support levels. A robust rebound could lead to a significant upward movement in BTC prices, potentially surpassing the $39,000 mark temporarily. However, there is a concern about a potential substantial bearish movement that could breach the critical support zone around $35,600.
In the midst of these market fluctuations, PlanB, the architect of the stock-to-flow model, confidently stated that Bitcoin’s price is improbable to fall below $35,000 once more.