Bitcoin On Exchanges at Extreme Low, A Good Sign?

September 12, 2021

Bitcoin may seem to be stalling at the $46,000 support level and although Bitcoin’s price dropped 10% at the beginning of the week, there is not much to worry about.

Some of the prominent on-chain analysts temper the noise as they provide some insights to current developments.

As CEO of CryptoQuant noted, BTC supply on exchanges is as an extreme low, and historically this is correlated with high BTC prices.

This was confirmed by Will Clemente who stressed that the supply at exchanges is at a 3 year low. He also noted that ‘whale’ holdings have increased in the past week and it was his ‘colleague’ Willy Woo who confirmed that is largely this group who has been buying the latest “dip”.

Optimism comes with a disclaimer as trading platform DecenTrader in their latest market update ‘The Return of the Bull’, noted an important metric that needs to be considered. The 50 and 200 displaced moving average (DMA) were on the way to showing a “golden cross,” a traditionally bullish signal prior to this weeks drop. The report noted:

“For Bitcoin to remain bullish, these two moving averages will need to be maintained, with any price action lower being intraweek – a weekly close below the 50 DMA would not be attractive, particularly if the 20 Week moving average is also lost (yellow line currently around $42k).

The selloff came amidst a pending ‘Golden Cross’ where the 50 DMA crosses above the 200 DMA.  This is often seen as being a very bullish sign for the market and typically for Bitcoin, we see dumps into ‘Golden Crosses’ and pumps into ‘Death Crosses’, So on this basis alone, the pullback wasn’t too much of a surprise.”

The post Bitcoin On Exchanges at Extreme Low, A Good Sign? appeared first on iGaming.

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Author: Peter Siu

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