Bitcoin price continues to struggle below $17,000, despite a slight increase in buying pressure in the past couple of days. The continued trend between the interim resistance & support levels is the current matter of concern, as the volatility has been significantly slashed.
Many influencers cautioned the market participants saying ‘not your keys, not your crypto’ & the FTX drama substantiate it all. Hence, now they are now focusing on safeguarding their assets rather than opening any new positions.
The recent FTX collapse has shaken the entire crypto space as the ripple effects of its fallout have been witnessed. While many more are expected to join the fallout list compelled the traders to withdraw their assets from the exchange reserves.
As per the on-chain data platform, nearly 845K BTC have been moved out of exchanges which is a decline of nearly 26.5%. The traders have been withdrawing the asset during the previous bull or bear market as well, but the current trend appears a little diverse. The exchange balance has dropped to the lowest levels for the first time in the past 3 to 4 years.
This may signal that the traders are bullish about the upcoming rally but considering the current market conditions, they do not rely on the platform to store them for the long term. Along with Bitcoin, the stablecoins also witnessed huge outflows from the exchanges which is a huge matter of concern at present.
The Bitcoin(BTC) price, currently has dropped below the realized price of $20,565 and heading towards the balanced price of $16,023. A drop beyond these levels may lead the price to discover new support levels while the levels around the Delta price at $12,467.
However, the BTC price around the Delta level may be considered the bottom of the current bear cycle, from which a decent upswing may kick in.