- The number of Bitcoin depositing addresses on exchanges has fallen to the lowest level since November 2021, indicating reduced selling pressure.
- More than 50% of BTC holders are still in profit, despite the lack of significant movement since the first-quarter peak.
- Analysts are optimistic about Bitcoin’s long-term prospects, including the $100,000 mark.
As of now, Bitcoin (BTC) is trading at $58,731, exhibiting moderate short-term volatility with a 4.23% change.
Over the past 48 hours, BTC price has declined by nearly 3.5%, yet it remains resilient with a 10% recovery gain over the last 10 days.
On-chain data, such as the decreasing number of exchange deposits by addresses, suggests a bullish outlook for long-term holders. Despite the lack of significant movement since the first-quarter peak, more than 50% of BTC holders are still in profit.
However, some traders have been taking profits, causing concern as BTC slipped below the 50-day and 200-day EMA bands.
The key question now is whether the price will succumb to bearish sell-offs or maintain its strength, offering investors a promising bullish trend ahead.
Bitcoin Exchange Depositing Addresses at its Lowest Level Since 2021
The number of Bitcoin depositing addresses on exchanges has fallen to 10,829, the lowest level since November 2021. This metric tracks the number of addresses sending Bitcoin to exchanges.
Importantly, a high value in this metric, typically indicates that more investors are selling their coins on spot exchanges. Conversely, a low value suggests fewer investors are selling, which could indicate a reduction in selling pressure over an asset.
This decrease in depositing addresses is bullish because it implies that fewer investors are looking to sell their holdings of ace among market leaders.
When selling pressure decreases, it can lead to stability or an uptick, as less supply is offloaded onto the market.
Per our Bitcoin price analysis, this reduction in selling activity can be a positive sign for its price, suggesting that investors are holding onto their coins in anticipation of higher future prices.
Both, Short-term & Long-term Analysts are Optimistic
Analyst @Eljaboom recently shared a long-term optimistic outlook for Bitcoin (BTC) on X. He compared BTC and Gold, both considered “digital gold” by traders.
According to @Eljaboom, the weekly chart (3W) of gold and the daily chart (2D) of BTC crypto showcases approximately similar structures.
Currently, BTC is at a similar point to where gold was in the last quarter of 2023. Since then, gold has experienced significant gains and a parabolic rise.
If BTC follows this pattern and breaks out of its corrective wave, it could gain substantially. The @Eljaboom highlights the BTC price prediction of the $100,000 target, which he thinks might come somewhere around the first quarter of 2025.
Similarly, a glance at the hourly chart also shows optimism based on @Ali_Martinez’s tweet post on X. He noted that BTC is trading within an upward parallel channel on the hourly chart. Likewise, its price is moving within that range.
Based on @Ali_Martinez’s theory, the BTC price succeeds in holding out the lower boundary of the pattern; BTC could rebound to the mid-or upper levels at $60,200 or $62000.
However, the BTC price prediction highlights that a break below the $58,100 support may lead to a drop towards the $55,000 mark.
BTC Crypto Technical Indicators Showcase Bullish Ground
Bitcoin price has recently approached the 20-day EMA due to a decline, but optimism remains strong. Several factors contribute to this positive outlook, and technical indicators suggest potential for further recovery.
The RSI has bounced back from oversold levels and is currently at 49.68, indicating it’s midway to being overbought and above the 14-SMA. Additionally, the MACD has shown a bullish crossover with a histogram reading of 402.41, highlighting the strength observed during the September surge.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
