Bitcoin price nears six month bottom against massive exchange outflow
|- Traders continue sweeping Bitcoin off exchanges for the twenty-sixth consecutive week.
- Bitcoin price neared its lowest point in six months, amidst major exchange outflow.
- Bitcoin price wiped out its weekly gains as Russia's invasion of Ukraine gathered steam.
- Analysts believe Bitcoin price is at risk of plummeting to $35,000 in an ongoing downtrend.
Bitcoin price witnessed a massive drop after posting gains over the past week. Traders continued to scoop up Bitcoin across exchanges as the asset's price hovered close to a six-month bottom, but although this led to a supply shortage it failed to drive BTC’s price higher.
Bitcoin supply shortage fails to fuel price rally
For twenty-six consecutive weeks, Bitcoin flowed out of exchanges consistently. Despite the recent crypto bloodbath, traders continued to sweep BTC off exchanges, creating a supply shortage.
Historically, dropping Bitcoin reserves across exchanges is indicative of traders stockpiling the asset for longer-term investment. This tends to drive a shortage of immediate supply on exchanges that fuels a BTC price rally. However, the recent Bitcoin accumulation is yet to trigger a rally in the asset. Bitcoin is hovering close to its six-month bottom following the recent price drop.
Bitcoin Net Exchange Outflow
As Russia's invasion of Ukraine intensifies, Bitcoin price gains from last week – after the asset was used as a get-around to circumvent sanctions – were wiped out completely, due to threats of an increasing crackdown from the US and others.
Now proponents believe Bitcoin price is poised for a trend reversal, however, as a static whale address, inactive for nearly eight years, was activated today. The large wallet investor has held 407 Bitcoin since 2013, now worth $15 million. Whale wallet activity is indicative of a trend reversal in Bitcoin price.
Analysts have evaluated the Bitcoin price trend and predicted a drop to $35,000. FXStreet analysts believe that from both daily and three-week chart perspectives, Bitcoin price is sitting at a low. Analysts have identified a Kumo twist, changing the Ichimoku cloud momentum. This implies a Bitcoin price swing low is around the corner.
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