- The supply of BTC on the exchange has fallen to the lowest level since 2017.
- BTC is still deep in a bear trend as it remains below 30 on its RSI.
Except Bitcoin’s [BTC] price development, there is a noticeable decrease in the supply on the exchanges. Recent data indicated that this decline had reached an annual low, with large keepers (whales) showing increased interest.
Read Bitcoin’s [BTC] Price Forecast 2023-24
Bitcoin on exchanges plummets
Around March 2020, the percentage of Bitcoin supply on exchanges peaked at over 16%. After that period, however, the economy entered a downturn characterized by some upward trend movements, followed by a general decline.
At the time of writing, the percentage of BTC held on exchanges has dropped to 5.80%. As a recent post from Santiment highlighted, this level represented the lowest point BTC has experienced since 2017.
Source: Sentiment
Furthermore, despite this drop, the Santiment chart revealed significant involvement from BTC whales. An examination of the map revealed several instances of increased whale activity, with the current number of whale transactions exceeding 1,100.
The continued involvement of whales indicated that key holders remained active in trades, even in the face of continued price developments and the dwindling supply of currency. This persistence also showed that there was sufficient liquidity despite the general decline.
Active Bitcoin addresses are seeing a bump
Between February and May 2021, Bitcoin peaked in terms of active addresses, over 20 million. Nevertheless, a decline followed this period and throughout 2022 the number of active addresses remained below that threshold.
A positive trend emerged around July 2023, bringing the number of active addresses closest to 2021 levels. At the time of writing, the number of active addresses over 30 days was over 18 million. This development is expected, as there has also been a remarkable influx of new addresses this year.
Source: Sentiment
BTC continues a downtrend
Examination of Bitcoin’s Relative Strength Index (RSI) on a daily time frame showed that Bitcoin is still in the oversold zone. This suggested that the prevailing bearish trend remained strong, and there was no clear relief in the price trajectory.
How much is 1.10.100 BTC worth today?
At the time of writing, the price was around 26,100, reflecting a drop of about 0.11%.
Source: TradingView
In addition, the long moving average (blue line) acted as a strong point of resistance, around $27,500. In addition, the Moving Average Convergence Divergence (MACD) trended below the zero line further confirming the bearish nature of the RSI trend.