ICOCalendar.Today

  • ICO Directory đź“–
  • ICT Token 🔥
  • Blockchain News đź—ž
    • Ethereum
    • Binance
    • Cryptocurrency
    • Litecoin
    • Monero
    • Ethereum Classic
    • Bitcoin
    • Tezos
    • Tron
    • Cardano
    • EOS
    • Algorand
    • ZCash
    • Dash
    • Chainlink
    • NEO
    • Maker
    • DeFi
  • List a project đź’Ł
  • Submit Press Release 👍
  • ICO Directory đź“–
  • ICT Token 🔥
  • Blockchain News đź—ž
    • Ethereum
    • Binance
    • Cryptocurrency
    • Litecoin
    • Monero
    • Ethereum Classic
    • Bitcoin
    • Tezos
    • Tron
    • Cardano
    • EOS
    • Algorand
    • ZCash
    • Dash
    • Chainlink
    • NEO
    • Maker
    • DeFi
  • List a project đź’Ł
  • Submit Press Release 👍

Crucial On-Chain Metric Signals a Bitcoin Bull Run May Be Drawing Near

7/18/2020

Comments

 

As the price of Bitcoin has risen and more individuals have entered the space, an increasing number of BTC has been held in exchange addresses. This trend is likely a byproduct of the arrival of less-technically inclined investors, coupled with the rise of altcoins.

Fortunately for bulls, data shows that the aggregate amount of Bitcoin on exchanges has begun to decrease at a rapid clip. This bodes well for the market because a decrease in exchange balances suggests there has also been a decrease in selling pressure.

Related Reading: Crypto Tidbits: Twitter’s “Bitcoin Scam,” Elon Musk & Dogecoin, Institutions Want BTC & ETH

BTC Continues To Leave Exchanges En-Masse

According to data from blockchain analytics firm Glassnode, the balance of all major exchanges (Coinbase, Kraken, Bitfinex, more) has declined from ~2.85 million BTC in February to ~2.6 million today.

The last time this metric saw such a strong move lower (percentage speaking) was in 2016. What happened after this, of course, was the 2017 bull run that took Bitcoin from $1,000 to $20,000.

Image

Chart from Glassnode, a blockchain analytics firm, of the aggregate number of BTC held by exchanges. Chart shared by Unfolded (@Cryptounfolded on Twitter).

The bullish implications of movements in exchange balances have been echoed by Ki-Young Ju, the chief executive of Crypto Quant.

As reported by NewsBTC, the industry executive said earlier this week that his company’s analysis of exchanges’ reserves suggests Bitcoin is in a macro accumulation phase:

“We are in the #BTC accumulation phase. The 30- and 90-day moving average gap of all exchanges’ reserve represents the downside risk. It hit a record low in May this year and is still below zero.”

Image

Chart of Bitcoin’s price action plus the “gap of all exchanges’ reserve” from the CEO of CryptoQuant, Ki Young Ju.

According to Ki Young Ju, whenever exchange reserves looked as they did now, Bitcoin performed well in the months afterward.

“Looking at the history of Bitcoin since 2015, we can see that whenever it touches zero or going negative, the downside Risk decreases, meaning the accumulation phase,” Ki Young Ju further explained. 
Related Reading: BTC Just Confirmed a Signal That Preceded Historical 5,000% Rallies

Why This Is Bullish For Bitcoin

The reason why a decreasing amount of BTC held by exchanges is bullish is due to the supply-demand dynamics of a market.

Assuming there is consistent demand, a decrease in Bitcoin deposited in exchange wallets will mean there is less supply, resulting in an upward shift in the equilibrium price of BTC.

Add this to the fact that BTC underwent its latest block reward halving in May, which decreases supply further, and Bitcoin seems primed to appreciate.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Crucial On-Chain Metric Signals It's Growing Easier to Push BTC Higher


Via https://www.newsbtc.com/2020/07/18/exchange-on-chain-metric-bitcoin-price/?utm_source=rss&utm_medium=rss&utm_campaign=exchange-on-chain-metric-bitcoin-price
Comments

    Blockchain News

    Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.
    BLOCKCHAIN NEWS

    Archives

    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    November 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017

    RSS Feed

​About

  • About us​
  • ICT Token
  • News​​
  • Testimonies
  • Terms of Service​​
  • ​​We on Google News​ 🤑
  • ​We in the media
  • ​Partners

Let's connect!

News Feeds

  • Blockchain News
  • Jobs Board 👨‍🎓
  • Bitcoin News
  • Ethereum News
  • Binance News
  • ​Tron News
  • Cardano News
  • EOS News
  • Tezos News
  • Stock Markets
  • COVID-19 News
  • Crypto News
  • Chainlink News
  • Litecoin News
  • Dash News
  • Monero News
  • ETC News
  • NEO News
  • Maker News
  • DeFi News
  • ZCash News
  • Algorand News
© 2017-2020 ICOCalendar.Today. All Rights Reserved.