Bitcoin Drops Below $47,000 Despite Bitcoin Supply Drop on Trading Platforms to All-Time Lows


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A brutal sell-off occurred once again in the cryptocurrency market with Bitcoin dropping below $47,000 on Monday, December 13 and continuing into the morning of Tuesday, December 14.

As of press time, it appears that Bitcoin has yet to recover from Monday’s lows as it is currently still trading at just under $47,000 with a total market capitalization of $884 billion.

Interestingly, despite the continued pressure on the bitcoin price, the supply of bitcoin on the trading platforms is simultaneously declining to reach its lowest level in 31 months.

This is what the data analysis platform “Santiment” indicated, as its post came as follows:

The supply of bitcoin on exchanges has not been this low in 31 months.

Prices have been volatile lately, but the fact that Bitcoin has not yet moved onto the exchanges is a positive sign that major selling risks should be limited.

While many have been comparing the recent market sell-off with that of May 2021, the Bitcoin price has already corrected nearly 40% from its all-time high of $69,000.

There is one key difference between the May correction and the current one, says Will Clementelli, cryptocurrency market analyst, and explains:

During the May period, there were big sell-offs by strong hands (whales).

While at the moment strong hands are buying more bitcoin.

While analyst Willy Wu told “there are no indications of more consecutive selling.”

Major long positions in Bitcoin futures were liquidated in the recent price correction indicating some kind of reset and positioning.

Additionally, based on the buy/sell heatmap, crypto analyst Willy Wu says the dip buying has been clearly visualized.

He added:

Buy the visible drop (spot sizes seen on the chain).

It has been happening, it is moderate, now and so far there are no indications of another series of selling.

It is also worth bearing in mind that long purchases have already been cleared.

As retail investors continue to face a test of patience and anxiety, the on-chain data was pointing to strength.

Will this translate into a good recovery or not?

Read also:

Learn the story of the photographer who made $1.4 million in profits through NFT

One of the largest banks in Spain officially begins trading Ethereum and providing cryptocurrency custody services

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