Supply continues to be soaked up and support levels for Bitcoin keep climbing
A trend that has been in place since about March of last year continues to work as the total supply of bitcoin sitting on Exchanges continues to fall, week after week.
With the latest numbers showing new year-to-date lows in terms of bitcoin on Exchanges, which is significant considering every day that goes by more and more bitcoin are created.
Which means, if you looked at the numbers sitting on Exchanges as a percentage of it's current total supply, the net outflows off exchanges would look even more impressive.
Here's what that trend has looked like:
(Source:
)https://twitter.com/Negentropic_/status/1362418581108047873/photo/1
- Negentropic_
This is especially significant considering that the price of bitcoin keeps going higher and higher and higher, currently trading around $55k.
Also, as you can see on the chart above, it's not only bitcoin that's been seeing this trend as Ethereum has since joined in on the fun as well.
Since about August of last year, ETH has seen a major reduction in the number of coins sitting on Exchanges as well and it's also making new lows currently as the price keeps climbing higher.
Not only is the supply on Exchanges dropping, but the support levels on the charts keep climbing...
Supply keeps dropping, prices keep rising, and the support levels keep climbing.
Based on data from glassnode, it looks like the new major support area looks to be around $48k.
In fact, it looks like the $48k area has now become what the $35k area was previously...
Check it out:
The places of high transaction volume often work as major support and resistance levels, and as you can see on the chart above the highest levels of activity are around $48k now, compared with $35k previously.
It sounds pretty neat talking about $48k being a major support level when we trading around $9k at this time last year.
The way things are going, it looks like the path of least resistance is going to continue to be higher. The next are of interest for me is gong to be around $60k.
Based on past patterns, the area between $60k-$75k is going to be where the next 30% correction starts from, meaning a local top is likely to occur in that range.
Stay informed my friends.
-Doc