The supply of Bitcoin on exchanges has plummeted to 7.53%, reflecting increased investor confidence. Rising network activity and technical indicators suggest a potential bullish phase.
Reasons for Bitcoin's Exchange Supply Decline
The sharp decrease in Bitcoin's exchange supply reflects a change in investor sentiment. More investors are choosing to hold onto their Bitcoin rather than selling it, indicating increased confidence in Bitcoin's future prospects. With a reduced supply, price fluctuations are more likely as demand begins to outstrip supply.
Bitcoin Network Activity
The activity of the Bitcoin network is also indicative of growing investor interest. The number of active addresses has risen by 1.16%, reaching 10.17 million, which suggests a larger number of users engaging with the Bitcoin network. Additionally, the transaction count has increased by 0.74%, amounting to over 418,000 transactions.
Bitcoin Technical Indicators
Technical analysis of Bitcoin’s price chart shows promising signs. The Fibonacci retracement levels suggest that Bitcoin has found support at the 0.236 level, around $81,325. The RSI is at 51, indicating that Bitcoin is neither overbought nor oversold, allowing for potential movement in both directions. Data on Bitcoin's liquidations shows a near balance between long and short liquidations.
The low supply of Bitcoin on exchanges, increased network activity, and promising technical indicators suggest a potential bullish phase for Bitcoin. However, short-term volatility could still impact the market.
