Bitcoins stored on exchanges are reaching the lowest levels since May 2019 and the amount continues to fall which means that the selling pressure is weakening so let’s read more in our latest Bitcoin news.
The on-chain analytics provider Santimetn reported that the Bitcoin supply sitting on exchanges dropped to levels not seen since May 2019 which is usually considered bullish as the investors took BTC off exchanges when they are in a position to hold and not really interested in selling. Sentiment called it a really good sign of a sell-off risk decreasing with the BTC prices falling this week in the wake of another Chinese FUD. Since Monday, BTC prices have dropped around 2.4% which is quite normal for the average trading week.
The supply of #Bitcoin sitting on exchanges has fallen to levels not seen since May, 2019. This is a solid indication of less sell-off pressure for $BTC. Meanwhile #Tether supply hasn’t been this high since June, an indication of increased buy power. https://t.co/2riFvhnXUE pic.twitter.com/wdB7FEQrmk
— Santiment (@santimentfeed) September 27, 2021
Santiment also observed that the number of stablecoins like Tether that reside on exchanges hasn’t been this high since June and suggested that buying side pressure is on the rise as well. There’s 17.6% of the entire supply of USDT that is sitting on the trading platforms right now according to the analytics company. Glassnode backed up the narrative in the weekly report which stated that the on-chain activity for BTC was declining as well. The on-chain entities are in a bearish activity channel as the network participation slowed down.
“This adds weight to the argument that the market may be dominated by HODLers and traders, with less participation by newer entrants and retail speculators.”
There’s also a premise that the exchanges are now using batch processing of transactions and the Lightning Network adoption surged as well with most taking some of the metrics as misleading. By observing the growth of the entities, the analytics provider concluded that most of today’s market participants are long-term holders and accumulators but the large scale accumulation happens in the early bull market and later stage bear market.
BTCUSD. Source TradingView
Glassnode reported that the amount of BTC that is liquid returned to a December 2018 level which only supported the outflow from exchanges metrics. BTC changed hands around $42,000 at the time of writing following a 3.5$% slide on teh day and the resistance was set at $45,600 where the 200-moving average lied which is an indicator that started to dro pas well, that suggests a long-term bear pattern according to Tradingview. Bitcoin stored on exchanges hit the lowest point since May 2019 and now the support lies at $41,150 with the asset trending down for the past 3 weeks.