In the last 24 hours, Bitcoin’s value increased by 3%, nearing the $38,000 level, and its weekly gains reached approximately 4.5%. While these price movements were happening, the supply of Bitcoin on exchanges dropped to the lowest level in six years.
The withdrawal of BTC from exchanges could be a positive catalyst for future growth. According to Santiment, investors are keeping their Bitcoins under their own control. Binance faced a $4.3 billion settlement in the US last week, and Coinbase received a court subpoena from the CFTC due to various collaborations with the derivatives trading platform Bybit.
On-chain data indicates that the top 10 Tether (USDT) cryptocurrency exchange wallets currently hold $15.23 billion, suggesting that the purchasing power of the exchanges is at the highest level in 17 months.
Throughout November, Bitcoin has shown notable resistance. Analysts state that if BTC’s supply deviates from its correlation with exchange inflows and exhibits an independent upward trend, this could be a significant sign of divergence.
Technically, the BTC price pulled back from $38,315 and dropped to $36,715 on the first day of the week. The price of the largest cryptocurrency is currently around $37,900 and appears to be forming new support levels. The current recovery could lead to a significant rise in BTC and push the price beyond $39,000. On the other hand, if the price falls below the support level of $35,600, control could shift to the sellers.