Bitcoin Creating Ripples with a Rise in Exchange Wallet Holding—How Important Is This for BTC Price Rally?
The Bitcoin bull market is in progress! The BTC price has been displaying strong bullish momentum as the bulls appear to have found a strong support band. After a choppy weekend, Bitcoin rallied into the weekly close in the last few days. The price has found its resistance at $37,500 and has been trading just below these levels.
The BTC price has been printing bullish candles for 5th consecutive weeks, which is only the second time in the past 3 years. The recent technicals and the on-chain indicators reveal a jaw-dropping surge in BTC held by crypto exchange wallets. The levels soared at an unprecedented pace of a whopping $1.16 billion in monthly increases.
What does this rise to suggest?
The surge suggests a potential bull phase in the crypto space. With this, centralized exchanges come into focus as the BTC held is at its highest since May. According to data from Glassnode, BTC’s net position soared by 31,382.43 BTC comparatively, raising the level to 2.35 million BTC.
This influx points out the renewed investor confidence in the centralized exchanges after they was shaken up after the FTX collapse. After the FTX debacle, it raised concerns about the safety of its assets on the exchanges. This caused investors to move their tokens off the exchanges for direct custody. However, the recent rounds of Javier Milei’s election victory in Argentina could be linked to the rise of over 31K BTC held over exchanges.
Collectively, Bitcoin is making huge waves with a massive surge in exchange wallet-holding. Besides, the BTC price is constantly making higher highs and lows, suggesting that strength is accumulating among the bulls. Therefore, in the coming days, one can expect the price to maintain massive strength and eventually rise above the crucial resistance at $37,500 initially and later head towards $38,000 in the short term.