BPOI Banner
Bitcoin Miners End Capitulation: New Data Signals Early Stages of Bull Market Bitcoin Miners End Capitulation: New Data Signals Early Stages of Bull Market

How the Decline in Bitcoin Exchange Deposits May Help its Price

Bitcoin’s (BTC) ongoing struggle to break past the $60,000 mark hasn’t triggered a sell-off among holders. Instead, many are holding onto their assets, as shown by the decline in exchange activity.

The number of daily addresses sending BTC to exchanges has hit a multi-year low, a trend that coincides with the market’s anticipation of the Federal Reserve’s decision at its September 18 meeting.

Bitcoin Traders Hold Onto Their Coins

On-chain data shows a decline in BTC’s Exchange Depositing Addresses, which track the number of addresses sending inflow transactions from the Bitcoin network to crypto exchanges. This metric has been trending downward since reaching its year-to-date peak on March 5.

Over the past week, the number of addresses that have deposited their coins on exchanges has dropped by 19%. When this metric falls, traders or investors are holding onto their coins rather than selling them.

Bitcoin Exchange Depositing Addresses. Source: CryptoQuant

The recent decline in exchange activity coincides with market predictions of a 50% chance for a half-percentage-point rate cut at the Federal Reserve’s meeting on Wednesday.

When Bitcoin’s selling pressure eases ahead of a potential rate cut, it often suggests that investors anticipate a more favorable market environment. This growing bullish sentiment is reflected in Bitcoin’s funding rate, which turned positive two days ago after six consecutive days of negative values.

At 0.003% as of press time, BTC’s funding rate indicates stronger demand for long positions over short ones.

Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks After 2024 Halving

btc funding rate
Bitcoin Funding Rate. Source: Santiment

BTC Price Prediction: A Rally Past $61,000 Is Possible

At press time, Bitcoin (BTC) is trading at $58,726, continuing its price decline from last weekend. However, the rising Chaikin Money Flow (CMF) suggests that accumulation is taking place.

Currently, the CMF, which tracks the flow of money into and out of BTC’s market, sits at 0.06, forming a bullish divergence with the falling price. This indicates that market participants are accumulating more BTC ahead of Wednesday’s Federal Reserve meeting.

If the coin rebounds, it could retest the resistance level at $61,388, potentially pushing BTC’s price toward $64,312.

Read more: Where To Trade Bitcoin Futures: A Comprehensive Guide

btc price prediction
Bitcoin Price Analysis. Source: TradingView

However, if accumulation slows and the downtrend continues, BTC might lose support at $54,302 and drop to the August 5 low of $49,000.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Source link

Abiodun Oladokun

https://beincrypto.com/bitcoin-exchange-deposits-drop-to-8-year-lows/

2024-09-16 16:42:31

bitcoin
Bitcoin (BTC) $ 91,271.45 4.14%
ethereum
Ethereum (ETH) $ 3,102.16 0.33%
tether
Tether (USDT) $ 1.00 0.22%
solana
Solana (SOL) $ 218.52 2.87%
bnb
BNB (BNB) $ 618.59 1.95%
dogecoin
Dogecoin (DOGE) $ 0.378368 1.14%
xrp
XRP (XRP) $ 0.90378 12.46%
usd-coin
USDC (USDC) $ 0.999977 0.19%
staked-ether
Lido Staked Ether (STETH) $ 3,100.19 0.35%
cardano
Cardano (ADA) $ 0.674105 15.92%
tron
TRON (TRX) $ 0.189384 6.32%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 5.44%
the-open-network
Toncoin (TON) $ 5.40 1.48%
avalanche-2
Avalanche (AVAX) $ 33.15 4.40%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 90,989.38 4.00%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,667.86 0.13%
sui
Sui (SUI) $ 3.66 7.59%
pepe
Pepe (PEPE) $ 0.000022 5.44%
weth
WETH (WETH) $ 3,097.47 0.01%
chainlink
Chainlink (LINK) $ 13.85 5.05%
bitcoin-cash
Bitcoin Cash (BCH) $ 433.29 2.93%
polkadot
Polkadot (DOT) $ 5.14 6.67%
leo-token
LEO Token (LEO) $ 7.66 3.54%
near
NEAR Protocol (NEAR) $ 5.61 2.96%
litecoin
Litecoin (LTC) $ 84.06 0.71%
aptos
Aptos (APT) $ 11.92 5.25%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,258.25 0.12%
usds
USDS (USDS) $ 0.997846 0.45%
uniswap
Uniswap (UNI) $ 8.54 2.47%
crypto-com-chain
Cronos (CRO) $ 0.168237 10.99%
stellar
Stellar (XLM) $ 0.143246 6.35%
internet-computer
Internet Computer (ICP) $ 8.73 7.84%
dogwifcoin
dogwifhat (WIF) $ 3.88 3.59%
bittensor
Bittensor (TAO) $ 519.31 3.78%
kaspa
Kaspa (KAS) $ 0.141894 1.98%
ethereum-classic
Ethereum Classic (ETC) $ 23.04 3.24%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.29 2.87%
dai
Dai (DAI) $ 0.998801 0.03%
whitebit
WhiteBIT Coin (WBT) $ 22.31 1.20%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.13%
bonk
Bonk (BONK) $ 0.000045 21.38%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.370871 1.87%
blockstack
Stacks (STX) $ 1.88 2.60%
render-token
Render (RENDER) $ 7.06 4.69%
hedera-hashgraph
Hedera (HBAR) $ 0.072807 11.09%
okb
OKB (OKB) $ 43.64 0.08%
monero
Monero (XMR) $ 141.86 2.97%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.14%
floki
FLOKI (FLOKI) $ 0.000261 15.37%
filecoin
Filecoin (FIL) $ 4.19 6.97%