On-Chain Analysis Shows Massive Bullish Prospects for Bitcoin, as Demand Spikes
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As Bitcoin (BTC) breaks a new all-time high, on-chain data suggests there’s a healthy prospect for more bullish moves for the benchmark cryptocurrency. The bullish sentiment gets backing from some fundamental factors, including that institutional investors are still stacking up on BTC long-time HODLers and miners are not selling, as the total number of BTC stored on exchanges continues to drop.
Recent reports show that the number of Bitcoins locked in exchanges has declined steadily over the past few months. CryptoQuant revealed that the total number of BTC stored on crypto exchanges peaked in mid-march 2020 when the price fell by more than 50% under a few hours but has plummeted to a record low since then.
CryptoQuant also noted that investors are in no hurry to deposit their holdings on exchanges. The total number of BTC on crypto exchanges now stands at roughly 2.2 million, about 12% of all circulating Bitcoin.
Meanwhile, institutional demand for the primary cryptocurrency continues to rise, dragging the price up along with it. Glassnode recently reported that 12,638 BTC ($760 million at the time of the transaction) got withdrawn from Coinbase in under ten minutes recently.
Lastly, Mike McGlone, a senior commodity strategist at Bloomberg, stated that Bitcoin is still in price-discovery mode, and a peak seems to be very distant at the moment.
Key BTC Levels to Watch — April 13
After a prolonged consolidation period, Bitcoin has finally broken through the $60-$61k resistance area and has posted a new all-time high at $62,534 just recently. The prospect for further gains in the near term seems immense given the spike in trading volume seen over the past few hours.
Additionally, the bullish bias gets support from the MACD indicator, which shows that BTC is in neutral trading conditions.
Meanwhile, our resistance levels are at $63,000, $63,500, and $64,000, and our key support levels are at $62,000, $61,500, and $61,000.
Total Market Capitalization: $2.14 trillion
Bitcoin Market Capitalization: $1.17 trillion
Bitcoin Dominance: 54.8%
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