Even though we are in a bear market right now, the number of Bitcoins moving to exchanges is seeing a major drop. Initially, there was an increase in this number, but as the market has settled in and prices are somewhat stuck in a range, we are no longer seeing a huge sell pressure. It indicates that the buyers might soon take the helm and push prices up.
Bitcoin sellers might soon be dominated by buyers
A good indication of where the crypto market is heading can be seen by how many Bitcoins are being moved to exchanges. The lower this number, the better the scenario for buyers or a bull market. Recently, this has been the case where the number of BTC addresses sending crypto to exchanges has seen a major dip. This could mean that we are near the bottom, and the market is going to move up from here.
Glassnode’s data shows that the number of BTC addresses sending coins to centralized exchanges has dropped to a new 22-month low. No one wants to sell their Bitcoins at such a low price; in other words, they are waiting for a major leg up.
Currently, the number of addresses sending BTC to centralized exchanges is 4,443.202, which is a huge drop from the 6000 addresses in the mid of 2022. It seems that the bear market is slowly fading away, and whales, institutions, and retail investors are already stacking for the next bull run.
Bitcoin price action
Currently, Bitcoin is trading near $19k as the $20k support could not hold after the US shared inflation data a while back. Many analysts are saying that this is the bottom, while some believe we might go lower. There is the possibility of visiting $16k and $14k if the price doesn’t jump back above $20k.
The current Bitcoin active supply is also rising, and even though sellers have slowed down, it hasn’t stopped altogether. Currently, the supply is around 718,437.728 Bitcoins, up from 717,097.427 Bitcoins on 11th September.
What are your thoughts as the number of Bitcoins moving to exchanges and addresses continues to drop? And do you think this signifies that the bear market is fading away? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: IRS will summon crypto users who try to evade taxes.
