By Shelly Melancon (Switzerland)
The amount of BTC available on exchanges has hit a record low level, according to data from CryptoQuant. As shown on the website by notable analyst Ki-Young Ju, BTC availability on exchanges has returned to its lowest since May this year.
Currently, BTC on exchanges was 2.399M. In May, the figure was slightly lower, reaching 2.390M. The data shows that May’s number had been the lowest ever recorded pre-dating early times of the BTC. During May scarcity, traders reversed the deposit trend to allow the BTC price to rise. A similar thing is happening already in September.
Sell Liquidity Crisis a Common Narrative
Such a crisis that occurred in May is now happening in September. Ju stated that the trend was a typical narrative that always ended up reinforcing healthy buying of excess liquidity. When the BTC dipped, many investors entered the buying mode in anticipation of a price rise, but that buying rate reduced due to sellers holding up BTC.
According to the crypto analyst, it’s not retail that’s to take the fall for the low supply. Derivatives platforms have witnessed significant withdrawals since Monday, which reduced BTC supply. Glassnode data showed that the supply section had moved for the first time since two years ago.
BTC Expected to Stay Above $43K Level
On Friday, BTC was trading at $46k, a good sign that the popular cryptocurrency is still bouncing from Tuesday’s crash. Experts state that $43k to $45k will be the base of support and anticipate its rise to $50k. On the bright side, $46k will provide a solid resistance level for the BTC should it go all the way above $55k and decides to fall again. This will provide the strength other altcoins need to scale up.
Will Tuesday’s Market Crash Re-Occur When BTC Hits $50K Again?
Tuesday’s market crash remains the most volatile marketing day yet in September. BTC was gearing up to a record high after El Salvador’s announcement on BTC becoming a legal tender. In the first few hours, BTC had climbed to $53k, but a few hours later, it crashed by almost 20% to below $43k. Analysts pointed to the announcement as the main cause of the crash.
Likely, another crash of that magnitude may not happen if the BTC manages to maintain the resistance level and break through $43k. With supply on exchanges now at record lows, the price of BTC will remain upheaval.
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