The amount of Bitcoin held on exchanges continues to fall which means that selling pressure is weakening and old hands are holding steadfast.
On-chain analytics provider Santiment has reported that the supply of Bitcoin sitting on exchanges has fallen to levels not seen since May 2019. This is usually considered bullish as investors take BTC off exchanges when they’re in a position to hold and are not interested in selling.
Santiment called it a “good sign of sell-off risk decreasing.” Bitcoin prices have been falling this week in the wake of a renewed crackdown in China and another round of FUD (fear, uncertainty, and doubt) that followed it.
Since Monday, BTC prices have slid around 2.4%, which is a pretty normal range for an average trading week.
📊 The supply of #Bitcoin sitting on exchanges has fallen to levels not seen since May, 2019. This is a solid indication of less sell-off pressure for $BTC. Meanwhile #Tether supply hasn't been this high since June, an indication of increased buy power. https://t.co/2riFvhnXUE pic.twitter.com/wdB7FEQrmk— Santiment (@santimentfeed) September 27, 2021
Stablecoins Ready to Buy?
Santiment also observed that the amount of stablecoins, specifically Tether, residing on exchanges has not been this high since June, suggesting that buying side pressure could be increasing. There is 17.6% of the entire supply of USDT sitting on trading platforms at the moment, according to the analytics firm.
Glassnode has backed up the hodl narrative in its weekly report issued on Monday, which states that on-chain activity for Bitcoin has been in decline. Active on-chain entities are in what it describes as a “bearish activity channel” as network participation slows down.
“This adds weight to the argument that the market may be dominated by HODLers and traders, with less participation by newer entrants and retail speculators.”
There is also the premise that exchanges are now using batch processing of transactions, and Lightning Network adoption has surged, which may make some of the metrics misleading.
By observing the net entities’ growth, the analytics provider concluded that the majority of today’s market participants are longer-term hodlers and accumulators. Large-scale accumulation occurs in both early bull markets and later-stage bear markets.
Glassnode also reported that the amount of Bitcoin that is “highly liquid” has returned to December 2018 levels, further supporting the outflow from exchanges metrics.
Bitcoin Price Outlook
BTC was changing hands around $42,000 at the time of writing, following a 3.5% slide on the day. Resistance is at $45,600, where the 200-day moving average lies, and that indicator has now started to drop, suggesting a longer-term bear pattern according to Tradingview.
Support currently lies at $41,150, and the asset has been trending down for the past 3 weeks.
Elon Musk-Posted Bitcoin $69,000 Meme Sold for $28,000 in WETH by Author
Here’s the story of the Bitcoin and Ethereum meme posted by Elon Musk this week, which then sold for 5 WETH and is now relisted for 69.42 WETH
On October 21, Tesla CEO and eccentric billionaire Elon Musk posted a meme depicting a couple lying on a sofa and watching Bitcoin and Ethereum price on the wall monitor, which showed $69,00 for Bitcoin and $4,200 for Ethereum.
Even though, he did not mention the author, she was still happy about Musk’s attention to her “Love in The Time of Web3” meme and in two days sold it for 5 wrapped Ethereum. That’s around $19,800, according to CNBC.
Now the meme is relisted for almost 70 WETH.
Elon Musk is “the ultimate meme lord”
The person who created the meme is a self-proclaimed “hobby artist”, 28-year-old Eva Beylin. When she learned that Musk posted her meme, she told CNBC she was over the moon, adding:
“The ultimate prize of memeology is for the ultimate meme lord to use your meme”
Beylin is keen on Web3, which includes decentralized Internet apps, blockchain and things like NFTs.
The meme sold two days later, Beylin is not initial author of it
“Love in The Time of Web3” was auctioned as an NFT on Zora platform on the night Musk tweet it and two days later the non-fungible token was sold for 5 wrapped ETH (around $19,800).
Still, Beylin is not the initial author. She picked the picture of another Twitter user – @shegenerates – who posted it as a joke. To compensate them, Beylin offered them 20 percent from the NFT sale.
The aforementioned Twitter user did not mind and she told CNBC so.
Now, Beylin plans to reinvest her proceeds from the sale into NFTs of other artists. Meanwhile, the person who bought the meme posted by Musk, has relisted it for 69.42 wrapped ETH.
They promised Beylin 15 percent of the price the meme will be sold for.
El Salvador President Looking to Buy the Bitcoin Dip, But Wants a Better Discount
Bitcoin ($BTC) price recorded a minor correction over the past 24-hours, falling to a daily low of $60,122. The retrace comes just days after $BTC posted a new ATH of $66,973 on Wednesday. The price correction is now being seen as an opportunity by many to stack more $BTC.
Nayib Bukele, the president of El Salvador, the world’s first country with Bitcoin as its legal tender is also among many who wants to buy the Bitcoin dip. However, he thinks the correction is too small and might need a better discount to make the purchase.
Bukele’s interest in Bitcoin has been known the world over as he is seen as the main architect behind El Salvador’s BTC adoption. The small central American nation started buying $BTC right after it was formally inducted in September this year. They made a total of 700 BTC purchases throughout September when the top cryptocurrency was trading under $45K. At the time Bukele was criticized as their purchase value was on the decline.
As $BTC touched new ATH, El Salvador’s Bitcoin holding got into millions of profit which is now being used for building hospitals and other national projects. He also shared a photo of himself sitting on the throne depicting him as the king after BTC ATH.
El Salvador is Reaping the Benefits of Bitcoin Adoption Already
International media continues to show El Salvador’s BTC adoption in a bad light, focusing more on the protests and less on the benefits that Bitcoin adoption has given to the country. The national Chivo wallet is already being used by two-thirds of Salvadorans while the Bitcoin ATMs have been a great success too receiving millions in daily remittance.
El Salvador has also invested in clean Bitcoin mining using abundant geothermal energy available in the country. The country has already set up the infrastructure and has mined its first Bitcoin as well, thus the adoption has proven to be a great win for the financially challenged nation, despite skepticism from all around.
One Ethereum Competitor Is Showing Strength As Bitcoin Loses Ground, According to Crypto Trader Benjamin Cowen
Crypto analyst Benjamin Cowen says an Ethereum rival is showing strength as Bitcoin pulls back from its all-time high.
Cowen tells his 576,000 YouTube subscribers that AVAX, the native token for the smart contract platform Avalanche, is “weathering the storm relatively well.”ADVERTISEMENT
The 12th-ranked asset by market cap is trading at $68.28 at time of writing, up over 5% in the past 24 hours and more than 20% in the past week, according to CoinGecko.
Cowen notes that AVAX is trading well above both its 20-week simple moving average (SMA) and 21-week exponential moving average (EMA). Taken together, the two metrics are what Cowen refers to as the “bull market support band.”
“We also have some wiggle room in the sense that we are above the bull market support band of the AVAX/USD valuation. The 20-week SMA is at $35.85 and the 21-week EMA is at $43.47. What that tells you is that Avalanche has been performing pretty well for the last several weeks.
A lot of coins are right above their bull market support band, and they haven’t been performing as well recently. A lot of these things can have some type of seasonality as the money ball just jumps around from project to project, and right now, clearly, AVAX is showing a decent amount of strength.”
Cowen doesn’t predict that AVAX will have a strong move against Bitcoin “in the next month or so,” but he does say that Avalanche can increase in value in terms of its relationship to the US dollar in the short term.