Key facts:
Balance on exchanges hits a 3-year low at 2.3 million bitcoins.
That data may mean that the strong selling wave is over.
The price of bitcoin (BTC) has been trading between USD 20,000 and 21,900 for five days, achieving a higher minimum each time. Although it has not yet managed to exceed the USD 22,000 line.
This scenario reflects The great strength of bitcoin selling that we saw a few days ago when it fell to USD 18,000 has stopped for the moment. Likewise, its rise in price to almost USD 22,000 indicates an increase in demand and holding company (long term storage). In this way, a change in the behavior of traders is perceived.
Glassnode browser data show that the bitcoin balance on cryptocurrency exchanges is 2,384,477,040 BTC. That figure is the lowest since 2018., indicating that many traders are not on the trading platforms. Precisely because they are not so interested in selling their bitcoins, unlike a few days ago.
Low Bitcoin Balance on Exchanges Reveals Bullish Market Sentiment
Usually when there is little bitcoin inventory on exchanges it means that traders are holding. That is, by storing their funds for the long term because they speculate that their price will rise over time.
An example of this is MinimalTrader, who told in an interview with CriptoNoticias that he took advantage of the price drop to buy and accumulate more BTC.
In this context, it can also be seen that during the last days of June increased the purchase of bitcoin by whales (large investors). Precisely among those who have between 1,000 BTC and 10,000 BTC. so what shared analyst JCoiners, according to data collected from Glassnode. And he expressed that it only remains to wait for the reaction of this trend that could break the bear market.
This scenario shows the bullish sentiment of the bitcoin market in the midst of a bearish cycle that has lasted seven months. Thus, it could be that we are at the beginning of a BTC price recovery, as Changpeng Zhao (CZ), the CEO of Binance, believes.
The head of Binance estimated last week that he thinks the worst part is over. From his perspective, bitcoin’s drop to $18,000 was the bottom of the cryptocurrency for this season. It could be that the wave of fear sales or loan leverage that characterized this season is over, as the economist Jose Sarasola explained.
However, the “extreme fear” in the market still continues, according to the index of Fear and Greed. Therefore, the bitcoin capitulation may not be over yet. It will be necessary to see if the demand for the cryptocurrency manages to consolidate to start a new bullish race. If not, we could be seeing lower prices soon.