The post Bitcoin Supply in Exchanges Spikes: Should You Be Worried About the Upcoming BTC Price Rally? appeared first on Coinpedia Fintech News
The bitcoin price is juggling around $36,000 as the bulls soon jumped into action as the token traded at a discounted price for a while. After plunging below $35,000, the investors jumped, causing the price to trigger a healthy rebound. The selling pressure has waned to some extent at the moment, but the price continues to trade under bearish influence.
So the question arises: will the rebound be a short-term rally as the investors appear to have a different trading strategy?
The balance of exchange has been considered one of the important indicators that point towards the sentiment of market participants. Whenever they are optimistic about the upcoming trend, the traders usually store their assets away from the exchanges. This causes a significant drop in the balance on the exchanges, which is a bullish indicator. Woefully, the balance on the exchanges has been surging, which flashes a bearish indicator over the crypto.
As per the data from Glassnode shared by an analyst, Ali, the balance over the exchanges has been rising for over a couple of weeks. The balance had dropped when the price showed signs of triggering a fresh upswing in October. Since then, the balance has been rising, with the jump in price indicating the traders are preparing to perform a trade. They may either sell or swap BTC for other crypto, which may not be good for a bullish trade setup.
Now that bearish clouds have been waving over the Bitcoin price rally, a significant pullback can be expected shortly. Once the selling pressure wanes, the bulls are expected to lift the price back above the lost levels. The BTC price prediction for 2023 is bullish, and hence a fine rise beyond $40,000 could be on the horizon.