Bitcoin Gains Momentum, Approaches $38,000
The price of Bitcoin (BTC), the world’s largest cryptocurrency, has surged by 3% in the last 24 hours, bringing it closer to the $38,000 mark. This upward movement extends BTC’s weekly gains to nearly 4.5%.
Bitcoin Supply Moving Off Exchanges
On-chain data reveals that a significant number of Bitcoins have been transferred off exchanges. This trend could potentially have a positive impact on Bitcoin’s price in the future. Reports indicate that Bitcoin exchange supply is currently at its lowest point in five years, since 2017.
Santiment, an on-chain platform, notes that Bitcoin supply is increasingly being moved into self-custody wallets. This indicates a decline in the reputation of exchanges. Notably, Binance recently faced a $4.3 billion settlement and Coinbase received a subpoena from CFTC regarding its dealings with Bybit, a derivatives trading platform.
Meanwhile, the 10 largest Tether exchange wallets now hold $15.23 billion, marking the highest level of buying power for exchanges in 17 months.
Bitcoin Shows Resilience and Potential Bullish Trend
In November, Bitcoin demonstrated positive performance and resilience. It notably exhibited a convergence with the stock market in recent weeks.
Analysts suggest that if Bitcoin continues to chart an independent upward trajectory without synchronized movement with the stock market, it could signal a departure from their established correlation. Historically, such a divergence has often indicated the beginning of a bullish trend in the cryptocurrency market.
BTC Price Rebounds Above $38,000
Despite the lack of approval for a spot BTC Exchange-Traded Fund (ETF) and recent regulatory actions against cryptocurrency exchanges like Binance and Kraken, Bitcoin (BTC) has rebounded above the $38,000 mark, showcasing trader confidence.
TradingView data reveals a shift in price dynamics, with Bitcoin experiencing a low of $36,715 on Monday before reversing to reach a peak of $38,315. However, it encountered resistance from bears.
Currently finding support around $37,900, Bitcoin is establishing new support levels. A strong rebound could lead to a significant upward movement in BTC prices, potentially surpassing $39,000 temporarily. However, there is concern about a potential bearish movement that could breach the critical support zone at $35,600.
PlanB Asserts Bitcoin’s Price Won’t Dip Below $35,000
In the midst of market fluctuations, PlanB, the creator of the stock-to-flow model for Bitcoin’s valuation, confidently stated that BTC’s price is unlikely to drop below $35,000 again.
BREAKING: Bitcoin valuation based on difficulty (hashrate) increased to $35k yesterday. IMO this could mean that, apart from possible black swans or short term volatility, based on $/kWh-arbitrage fundamentals … BTC will never go below $35k ever again. pic.twitter.com/JPLkXieQAP
— PlanB (@100trillionUSD) November 27, 2023
Hot Take: Bitcoin Continues to Gain Momentum
The price of Bitcoin (BTC) has shown impressive gains in the past 24 hours, approaching the $38,000 mark. This upward movement is supported by the movement of Bitcoins off exchanges, indicating a potential bullish catalyst. Additionally, Bitcoin’s resilience and its divergence from the stock market could suggest the onset of a bullish trend. Despite regulatory actions and the absence of a spot BTC ETF approval, BTC has rebounded above $38,000. However, there is still uncertainty about potential bearish movements. PlanB, the creator of the stock-to-flow model, remains confident that Bitcoin’s price won’t dip below $35,000 again.
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