Bitcoin shows signs of growth, reaching new price levels despite declining supply on exchanges. Analysis of current price cycles suggests this situation may herald further increases.
Bitcoin Price Dynamics
Bitcoin continues its upward trend, trading at $117,695 with a daily gain of 1.43%. Analysts from XForceGlobal state that the market is currently in the 'orange box,' a region historically preceding parabolic rallies. They note, 'We are late in the bull market, but still early in the real trend.'
Exchange Supply Decline
According to Santiment, the supply of Bitcoin on exchanges continues to shrink. Over the last four months, 315,830 BTC have been moved, approximately 21% of the total supply. This indicates growing confidence among long-term investors who increasingly store their assets in self-custody wallets.
Current Levels and Support
Bitcoin is currently testing resistance at $117,750. If breached, the next target could be $120,005. Special attention is given to key price levels: support lies at $111,789. Holding above $117,000 could trigger a new leg higher.
The situation surrounding Bitcoin indicates a delicate balance between rising prices and decreasing supply on exchanges. It is essential to monitor upcoming support and resistance levels, as they may signal further price movements.
