Author: dfmines

On-chain data shows the Bitcoin spot exchange inventory, which had been stuck in consolidation earlier, has finally started following a new trajectory. Bitcoin Spot Exchange Supply Has Seen A Sharp Plunge Recently In a new post on X, analyst Willy Woo has discussed about the trend in the Bitcoin spot exchange inventory. This metric keeps track of the total amount of the cryptocurrency that’s sitting in the wallets of all centralized spot exchanges. Related Reading: Dogecoin Jumps 20%, But Social Media Still Bearish: Green Signal For Rally? This part of the exchange supply refers to the actual tokens of the asset that exist on the blockchain. The exchange supply that doesn’t actually involve users to own BTC, as is the case with derivatives products, is known as “paper BTC.” When the spot exchange inventory rises, it means the investors are depositing a net number of coins into the wallets associated with these platforms. As one of the main reasons why holders might transfer their BTC to exchanges is for selling-related purposes, such a trend can have a bearish impact on the asset’s price. On the other hand, the indicator going down implies the exchange outflows are outweighing the exchange inflows. Investors usually take their coins off into self-custody when they plan to hold into the long-term, so this kind of trend can be bullish for the cryptocurrency. Now, here is a chart that shows the trend in the Bitcoin spot exchange inventory over the last couple of years: As displayed in the above graph, the Bitcoin spot exchange inventory saw a large plunge around the time of the FTX collapse back in November 2022. This suggests a large movement of coins occurred out of these platforms as the asset’s bear market reached its bottom. Following this plummet, the indicator started a phase of consolidation that lasted for the entirety of 2023 and most of 2024. The trend finally broke in the last couple of months of 2024, when the metric registered a sharp crash. These outflows came alongside Bitcoin’s exploration of new all-time highs, implying the accumulation from the investors might have played a role in the run. In total, 240,000 BTC exited the exchange-related wallets during this plunge. Related Reading: Dogecoin Bullish Signal: Whales Make $1.08 Billion Net DOGE Purchase Woo has pointed out that Microstrategy’s buying in this period summed up to about 192,000 BTC, which means there are other whales present in the market taking significant amounts off the exchanges. So far, the downtrend in the spot exchange inventory has shown no signs of reaching a bottom, as outflows have continued into 2025. If investors indeed keep up the accumulation in the near future as well, then Bitcoin could benefit from some further bullish momentum. BTC Price Bitcoin has continued its recovery in a sharp fashion during the last 24 hours as its price has broken back above the $101,700 mark. Featured image from Dall-E, woocharts.com, chart from TradingView.com

XRP should attain a 260% gain or a $6.40 price target after a breakout, but a delay may affect the chart pattern’s outcome, says Peter Brandt.

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The central bank governor, Aleš Michl, recently said he was considering investing in Bitcoin as part of the bank’s diversification strategy.

KULR, a company adopting a bitcoin-first strategy, has recently acquired $21 million worth of BTC as part of its accumulation program. The company aims to allocate 90% of its free cash reserves to bitcoin. KULR Kicks Off 2025 by Buying Bitcoin KULR, an energy management services company, has started 2025 by filling its bitcoin coffers. […]

Bitcoin (BTC) has surpassed the $100,000 threshold for the first time in two weeks, supported by revived momentum after the expected confirmation of Donald Trump’s US election win by Congress this week.  According to Bloomberg data, the market’s leading cryptocurrency climbed over 4% in the 24-hour time frame to hit $102,500 on Monday, recording a weekly rise of 11%—its highest surge since November 24. Bitcoin Rally Resumes: Surges Past $100,000 BTC’s performance in 2024 encountered a deceleration in late December as investors aimed to secure their gains. Nevertheless, enthusiasm for a pro-crypto government under Trump has rekindled interest, propelling Bitcoin to a record peak of $108,000.  As Congress prepares to assemble to certify Trump’s win, market sentiment appears optimistic. Khushboo Khullar, a venture partner at Lightning Ventures that invests in Bitcoin-related companies, stated, “A super cycle in 2025 is expected due to regulatory changes from the Trump administration.” Related Reading: Key Indicator Signals Buy On XRP 4-Hour Chart – Analyst Predicts A Price Rebound A notable surge of investment in Bitcoin exchange-traded funds (ETFs) has also fueled this momentum. On Friday, investors funneled a net $908 million into US Bitcoin ETFs.  This signaled the fifth-highest inflow since they were launched in January 2024, following a historic net outflow of $680 million on December 19. Another positive indicator for Bitcoin traders is the rebound of the Bitcoin Coinbase Premium, which gauges the price variance between Bitcoin on Coinbase and Binance.  Following its lowest point since Sam Bankman-Fried’s FTX fell in 2022, the premium has recovered, indicating a rising demand for Bitcoin among US investors.  Joe McCann, the CEO of Asymmetric, a crypto hedge fund located in Miami, pointed out that ETF issuers mainly transact with Coinbase, which implies that the demand for ETFs can affect the premium or discount rates. Key Support Levels Under Scrutiny As the market looks towards 2025, Bloomberg highlights that Bitcoin’s path will significantly rely on Trump’s dedication to his crypto-related pledges, encompassing a national Bitcoin reserve.  Nonetheless, doubts persist about the longevity of the ongoing rally. A recent MLIV Pulse survey revealed that 39% of participants viewed Bitcoin as the investment most prone to becoming a loser in 2025, the highest share of all choices. Regarding technical analysis, market expert Morecryptoonl pointed out that Bitcoin has formed a more distinct five-wave pattern, with a bearish outcome that is still feasible if specific support levels are violated.  Related Reading: Litecoin Comeback: LTC Breaks Free And Guns For $400 At present, wave two is required to maintain support, while wave one is technically finished but is anticipated to reach a minimum of $100,800. Crucial support zones have been pinpointed between $93,144 and $96,554, which might be examined after wave one validates its peak. Concerning Bitcoin ETFs, Glassnode asserts that the purchasing trend continues to be robust, owing to seasonal influences. With Inauguration Day nearing, the market analysis firm expects a higher purchasing activity from traditional finance investors, potentially impacting Bitcoin’s price movements further. At the time of writing, BTC has slipped back towards the $101,888 level but is still making significant gains on all time frames.  Featured image from DALL-E, chart from TradingView.com

Bitcoin is shifting traders’ expectations by holding six figures as bullish BTC price patterns return to the radar.

The cryptocurrency market, led by Bitcoin, has often followed a pattern of alternating growth and decline cycles, reflecting investor sentiment and market fundamentals. Since the beginning of the current bull cycle in January 2023, Bitcoin has demonstrated substantial gains in both price and market duration. Increased capital inflows from new investors have supported this growth and existing participants are reinvesting their profits. However, recent indicators suggest that the market may now be entering the latter stages of this cycle, raising questions about what lies ahead for Bitcoin and the broader crypto market. Related Reading: MARA CEO Advocates “Invest And Forget” Approach To Bitcoin, Citing Strong Historical Performance Key Indicators Point to Cautious Optimism A significant metric supporting this observation is the percentage of Bitcoin traded within the past month based on realized market cap – UTXO, which currently sits at 36%, according to a recent analysis shared by a CryptoQuant analyst known as Crypto Dan. In the analysis, Dan reveals that while this figure remains lower than peak levels observed in previous bull cycles, its downward trajectory suggests that the market is “progressing toward its cycle peak.” Dan anticipates that this peak could occur sometime between Q1 and Q2 of 2025. However, rather than a single explosive surge, historical trends indicate that the ratio could experience sharp increases two to four more times before the cycle concludes. This pattern typically signals market overheating, followed by a subsequent correction or bear cycle. Dan further highlighted that while the market still holds potential for gains, a conservative approach to risk management is advisable. Historically, late-stage bull cycles have been marked by increased volatility, as profit-taking begins to influence market behavior. Dan wrote: Nevertheless, from a conservative standpoint and with risk management in mind, caution is advised. For this reason, I am planning to gradually sell my holdings. Another critical observation from on-chain data is the relationship between short-term traders and long-term holders. Historically, a sharp increase in short-term trading activity often precedes a market correction. Traders who entered the market during recent price rallies may begin to sell off their holdings, leading to temporary downward pressure on prices. Conversely, long-term holders often remain resilient during these periods, providing a stabilizing force in the market. Bitcoin Sees Recovery As The New Year Begins After weeks of struggling and remaining below $100,000 in the last month of 2024, Bitcoin appears to have now resumed its bullish momentum as the first month of 2025 commences. Although, BTC entered the new year with a price below $95,000. However, a few days later, the asset continued its upward momentum, reclaiming the $100,000 price mark to currently trade at a price of $101,624. At the time of writing, BTC recorded a 3.9% increase in the past day bringing its price closer to its recently established all-time high above $108,000 last month. Featured image created with DALL-E, Chart from TradingView

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