Bitcoin (BTC) price is at $56,970 as supply on the exchange falls to its lowest level in six years

Over the past two days, Bitcoin bulls have taken the lead after nearly a month of consolidation since the Bitcoin ETF spot approval. Bitcoin price is up another 3.5% in the last 24 hours and is currently at $46,063 with a market cap of $903 billion.

Bitcoin exchange offering at six-year low

The sharp rise in Bitcoin price also has to do with the sharp withdrawal of BTC from exchanges in the last two weeks. According to reports, 25,305 Bitcoins worth $1.1 billion were withdrawn from exchanges during this time.

Of note, the lowest Bitcoin quota on exchanges since December 2017 indicates a trend towards reduced Bitcoin holdings on trading platforms. This trend suggests a change in investor behavior, with traders potentially opting for long-term holding strategies. According to Santiment data, only 5.3% of the total BTC supply is currently on exchanges. On the other hand, the accumulation of Bitcoin whales has increased over the past two weeks.

Courtesy: Santiment

Additionally, Bitcoin’s dominance in the cryptocurrency market has increased significantly, eclipsing altcoins, with its market cap reaching as high as $45.5K today.

The on-chain indicators are positive

Renowned crypto analyst Ali Martinez has provided insights into Bitcoin's current price dynamics and highlighted key support and resistance levels for the cryptocurrency.

According to Martinez, Bitcoin's recent trading activity shows a significant support level at $42,560, with approximately 1.02 million BTC trading within this price range. Maintaining this support would be crucial in deciding Bitcoin’s future trajectory.

Conversely, Martinez highlights key resistance levels at $47,360 and $56,970, indicating potential obstacles to Bitcoin’s upside.

Martinez also draws attention to the Super Trend indicator, which recently showed a buy signal on Bitcoin's monthly chart. This tool is known for its accuracy in predicting BTC bull markets, with previous buy signals resulting in significant gains.

Courtesy: Ali Martinez

Martinez points out that the four buy signals that the super trend indicator has issued since Bitcoin's launch have all been confirmed, resulting in significant gains ranging from 828% to 169,172%. Another important indicator is that almost 70% of Bitcoin holders have not moved their coins in the last year.

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