Crypto News: The weekend often brings a lull in activity in the crypto market, with prices relatively flat. However, crypto trader and analyst Crypto Rover is predicting an imminent breakout for Bitcoin (BTC), adding a spark of excitement to the market this week.
Bitcoin on the verge of a breakthrough?
The expectation comes from the formation of a parallel wedge on the 3-day chart of BTC. The wedge pattern is characterized by a converging pair of support and resistance levels at a point to the right and a narrowing price channel. When price breaks above resistance or support and establishes a new trend, the pattern is broken. However, it is important to note that this potential breakout could bring near-term relief rather than a sustained recovery.
Still, amid the possible positive breakout, there is a risk of BTC price crashing to $25,000. Overall market sentiment remains partially bearish, with memecoiners appearing to be the most active participants and making significant bets in the crypto market.
Read more: Chainlink VRF Is Live On Arbitrum One, What Does It Mean For The Crypto Industry?
BTC supply lowest on exchanges
Contrasting with the weekend forecasts, data from crypto analytics platform Santiment shows a different trend among crypto investors. Recently, investors have been buying and withdrawing their coins from crypto exchanges at a rapid pace. Santiment reports that the circulating supply of BTC on exchanges is currently 5.7%, its lowest level since December 2017 when it first touched $20,000. Likewise, the circulating supply of ETH is 10.1%, which is its lowest level since its inception in 2015. This drop can be attributed to ETH holders choosing to pawn their coins rather than holding them on exchanges to lock in long-term gains.
📉👌 #Bitcoin and #Ethereum continue to quietly watch as more and more of their existing supplies go into self-custody. While not a perfect indicator, falling coins on exchanges generally portend future bull runs given enough time. https://t.co/N1Icon7U19 pic.twitter.com/f5YXzqmZNf
— Santiment (@santimentfeed) May 20, 2023
If the anticipated breakout occurs and moves in a positive direction, BTC could climb back above $27,000. On the other hand, if the price breaks below the next support level at $26,300, a sharp drop to the next support level around $25,000 could follow.
As of today, BTC is priced at $26,924.76, up 0.39% over the past 24 hours, as opposed to a 0.48% gain over the past seven days. Additionally, note that BTC’s technical analysis (TA) indicators in CoinGape’s price tracker are currently recommending a strong sell position, recommending sell at level 11 and buy at level 5 through the moving averages.
Also Read: ‘Rich Dad Poor Dad’ Author Predicts Bitcoin Value at $100,000, Calling It Insurance Against Corruption
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The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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