- Bitcoin supply on exchange wallets has nosedived by nearly 15% to 1.13 million BTC since May 7.
- A significant decline in Bitcoin supply across exchanges signals a reduction in selling pressure on the asset.
- BTC is exchanging hands at $27,632, market participants are awaiting Bitcoin price recovery to the $30,000 peak seen in April 2023.
Bitcoin (BTC) price recovery becomes likely with the declining supply of the asset on cryptocurrency exchange wallets. Since May 7, there has been a 15% decline in the asset’s supply, which could potentially reduce the selling pressure on Bitcoin.
Also read: FTX creditors await retrieval of lost funds as Alameda Research receives $57.5 million in Tether
Bitcoin on exchanges hits lowest ratio since December 2017
The amount of Bitcoin on exchanges has hit its lowest ratio in five and half years. Based on data from the crypto intelligence tracker Santiment, there is an increased interest in self custody and this has reduced the likelihood of BTC getting sold back to exchange wallets.
BTC supply on exchanges plummets
Interestingly, whales holding BTC have increased their activity as of May 9. A Binance-based Bitcoin wallet address that was dormant for a long time engaged in four transactions to move $2.26 billion worth of BTC out of the exchange.
BTC supply on exchanges declined from 1.32 to 1.13 million tokens over the past 48 hours, as seen in the chart below.
%20[09.28.35,%2009%20May,%202023]-638192387487755497.png)
Bitcoin supply across exchange wallets
Typically, a decline in exchange wallet reserves of BTC is considered a bullish sign, since the lower amount of the asset on trading platforms makes less of the crypto available for sale. This translates to lower selling pressure and a likely recovery in Bitcoin price.
Bitcoin price not out of the woods according to analyst
Despite the favorable on-chain metrics, technicals still point to a possible slide in BTC. Technical analyst at Castillo Trading argue that Bitcoin price is likely to witness short-term upside move before a correction lower.
BTC/USD Perpetual Inverse Swap Contract
The expert is eyeing three Point Of Control levels at $28,262, $28,977, and $29,398. The analyst’s target for Bitcoin is $30,769 before BTC price corrects lower.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
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.