The supply of bitcoin on exchanges is at its lowest

The supply of bitcoin on exchanges is at its lowest since January. 

This was reported by Santiment, who publishes a graph in which the decreasing trend that began in mid-April can be clearly seen, or more or less in conjunction with the ATH of the price. 

The supply of bitcoin on exchanges typically increases as BTCs are moved to exchanges for sale. 

Until October last year it was very high, but as the price increased it started to drop significantly, hitting two lows in November and early January. 

But then, with the incredible increase in the price from $ 30,000 to almost $ 65,000, it started to rise again, right up until mid-April. 

The maximum peak of this phase, however, was reached in mid-May, or before the flash crash of 19 May, probably an index of panic selling. 

Since then, the panic seems to have dissolved, so much so that yesterday the minimum peak of this phase was reached, only slightly higher than the minimum peaks of November and January. 

According to Santiment, the supply of BTC on exchanges is now close to the lows of 2021, while that outside the exchanges has come to equal the level last seen in November 2018. 

This implies a lower risk of selling off at this time. 

From this point of view, the current situation seems very different, if not opposite, to the one before the flash crash of May 19, which brought the price to $ 30,000 for the first time after the end of January. 

Since then, the price of bitcoin has continued to fluctuate in a range of first between $ 30,000 and $ 40,000, and then between $ 30,000 and $ 35,000. 

Given that the risks of sell-offs currently appear to be lower, a similar dynamic to the second half of May is unlikely. 

Indeed, this should generally be interpreted as an accumulation scenario, as also suggested by the growth of BTC held by whales , or a moment in which those who buy bitcoins on exchanges do so to withdraw them and store them over the medium / long term in their own wallet. 

In fact, if there are no events capable of drastically changing things, it is a bullish scenario, or at least a situation of relative stability that suggests future growth hypotheses, even perhaps in the short term. 

However, 2021 has accustomed us to large and sudden changes, therefore the probability that something could suddenly disturb the current scenario is there.

News Source