The amount of Bitcoin (BTC) available on exchanges is about to reach the lowest levels in its history, as the latest data shows.
What he pointed Ki Young Ju, CEO of CryptoQuant on-chain analytics platform, Exchange reserves have returned to record lows last seen in early May.
Time for another Bitcoin “sell-side liquidity crisis”?
As of September 9, the latest date for which figures are available, there were 2,399 million BTC available on major exchanges. The May low was 2,390 million.
Therefore, Bitcoin traders have reversed a deposit trend that occurred during the mid-May price turmoil, something that points to a clear return to an investment-focused, not speculation-focused mindset.
“I hope to see another liquidity crisis on the sell side of Bitcoin”Ki added in the comments.
Said crisis, or “Supply squeeze”, has formed a common narrative in recent weeks, bolstered by the healthy buying of excess liquidity from Tuesday’s price drop.
It’s not just retail: Derivatives platforms have also seen major BTC withdrawals this week, while the general supply of BTC is becoming less mobile.
The data from on-chain analytics firm Glassnode confirmed that on Friday, the section of the offering that was last moved a year or two ago hit a three-year low.
Therefore, those who moved BTC to an address between September 2019 and September 2020 are not touching their holdings.
Bitcoin Support Levels Suggest a $ 43,000 Bottom
The BTC / USD pair continued to trade below $ 46,000 at the time of writing.
In his latest YouTube update, Cointelegraph contributor, Michaël van de Poppe, denied any idea that Bitcoin had entered a bear market, with nearby levels proposed to provide support.
This is $ 45,700, which should give way to between $ 43,000 and $ 44,000 if it fails.
“On the upside, we also know that $ 46,700 is still a very important resistance level.”added.
“If that breaks down, I think the chances of us breaking through $ 47,500 all the way to $ 50,000 are significant, and that will bring strength to the altcoin markets as altcoins will just follow suit.”