- 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.
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
Editors’ Picks
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.
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.
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.
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.
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.
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.