Bitcoin price levels up for a 13.5% move amid dwindling exchange balance


  • Bitcoin’s balance on exchanges drops to a four-year low, hinting at a bullish long-term outlook.
  • Bitcoin price needs to break and keep above the 200-day SMA to affirm an impending move to $28,000.
  • Bulls must defend the newly reclaimed $24,000 level to avert potential losses to $22,000.

Bitcoin price has struggled to find a solid footing during this crypto winter. Support above $24,000 is becoming elusive amid frequent pullbacks. However, its overall technical picture points to a smooth ride to $28,000. Bitcoin price will need support from micro and fundamental factors to keep the uptrend intact.

Bitcoin price regains momentum

Bitcoin price is hunting for a way out of the bear market, and one sign it is having some success is the falling amount of BTCs on exchanges. On-chain data by Glassnode elucidates an exchange balance currently around 2,377,195 BTC, down from 2,652,488 BTC on January 1, 2022.

Usually, a consistent drop in this metric suggests that investors prefer their coins in other wallets rather than on exchanges where they are more likely to be poised to sell them. It shows that prices will eventually turn around, which is a positive indicator for Bitcoin price.

BTC exchange balance

Bitcoin Balance On Exchanges

The Moving Average Convergence Divergence (MACD) on the 12-hour chart has reinforced the Bitcoin price move above $24,000. Traders can squeeze in more gains as long as the bullish divergence formed by the 12-day Exponential Moving Average (EMA) and the 26-day EMA stays in place.

Bitcoin price

BTC/USD 12-hour chart

A break above the 200-day Simple Moving Average (SMA) at $25,257 will likely weaken the bears more, eliciting the fear of missing out (FOMO). If most of the buyers waiting on the sidelines heed the above buy signal, a breakout to $28,000 will be a matter of when.

It will be safer to book early profits at $25,257 if the uncertainty of the bear market is considered. However, bullish traders could wait till $26,000, which is an inflection point likely to determine the approach to $28,000.

On the flip side, a hefty buyer congestion zone is expected at $24,000. The ascending trend line will come in handy if declines soar. Fortifying this support is the 50-day SMA on the same 12-hour chart.

Bitcoin price

Bitcoin IOMAP chart

Bitcoin price will likely settle for the path with the least resistance, and according to IntoTheBlock’s IOMAP on-chain model, that’s the one heading north. The chart below reveals the presence of minor seller concentration areas to $28,000. On the contrary, robust support zones are in line to cushion Bitcoin price from plunging below $24,000.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP