Bitcoin supply drops to 31-month lows


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It appears that the Bitcoin price drop below $50,000 and increased volatility over the past two weeks has had an impact on the supply of Bitcoin on the trading platforms.

According to data published by Santiment, the supply of bitcoin in cryptocurrency exchanges has reached its lowest level in 31 months, at 11.96% (as of December 13).

Big Sale Diminished:

Santiment confirms in its latest report that the decrease in supply limits the chances of a major selloff.

The same platform also indicated that prices have been volatile lately, but the fact that Bitcoin has not moved to the exchanges at the moment is a positive sign that the significant selling risk will be limited.

Image source: FinBold

What does low bitcoin supply mean in trading platforms? What are its possible causes?

The likely reason behind the drop in supply in exchanges is that more bitcoin has been moved from exchanges to cold wallets, as investors are starting to become more optimistic about the long-term price of the leading cryptocurrency.

Of course, this also means that there is less selling pressure in the market.

According to a different report by NewsBTC, the Fisher Transform (technical indicator) is also indicating that Bitcoin is approaching the bottom.

And it works by converting the price into a normal distribution.

The indicator has shown such extreme deviation in its entire history as now twice:

Once in October 2011 when bitcoin was trading around $2 and again at the bottom of a bear market in December 2018.

According to the indicator, a possible reversal is likely to happen soon (at deviation 2.0).

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Yesterday, we talked at Bitcoin Arab about whales transferring 34,000 Bitcoins worth about $1.7 billion.

Most of the bitcoin was transferred between wallets in two big deals, while whales transferred the rest (about $500 million) from wallets to different exchanges and from Coinbase to wallets.

In addition, it was also revealed yesterday that the value of on-chain Bitcoin transactions fell to a 3-month low, after more than $40 billion flowed into BTC within 24 hours and the coin’s price returned to over $48,000.

The last time the value of a transaction was this low, bitcoin traded over $61,000, that was just a week before it hit a new all-time high of $69,000.

Will Bitcoin repeat its massive rally and break the $53,000 resistance level?

Read also:

Proposal to merge SushiSwap with Bancor… Will the community vote in favor of the proposal?

Donald Trump confirms crypto market move and praises his wife’s project on NFT

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