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Bitcoin Exchange Deposits Hit Lowest Level Since 2016 Amid Shifting Market Dynamics

Bitcoin exchange depositing addresses have dropped to their lowest point since 2016, suggesting a significant decrease in the number of investors selling their coins on spot exchanges.

This trend hints at a potential reduction in selling pressure, a bullish sign for long-term holders as fewer coins are being offloaded into the market.

In terms of investor behavior, new whales and Binance traders are actively accumulating Bitcoin, while older whales continue to hold their positions. This combination of new buying activity and long-term holders staying firm could indicate market stability and potentially set the stage for future price growth.

On the technical side, Bitcoin is currently moving within a parallel channel on the hourly chart. If the lower boundary holds, there’s a strong chance for $BTC to rebound to mid-range levels around $60,200 or even $62,000. However, if the $58,100 support level breaks, Bitcoin could face a decline toward the $55,000 mark, highlighting the importance of this critical support zone.

Bitcoin Bearish Sentiment Continues 

Looking at a broader time frame, the Bitcoin MVRV (Market Value to Realized Value) Momentum indicates that Bitcoin has been in a downtrend since it fell below $66,750 in June. Despite recent movements, this bearish trend has yet to reverse.

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On-chain data reveals that a whale recently sold 500 BTC, valued at $30.07 million, just 12 hours before Bitcoin’s price dropped. This whale, known for making large swing trades, has a mixed track record—profiting from the first trade but incurring losses on the subsequent two. Despite holding 259.6 BTC ($15.15 million), the whale’s total loss exceeds $6 million.

As Bitcoin continues to navigate these critical support and resistance levels, all eyes will be on whether it can regain upward momentum or face further downside.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: strelok/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

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