Bitcoin (BTC) available on exchanges is about to hit its lowest levels ever, the latest data shows.
As noted by Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, exchange reserves have returned to all-time lows last seen in early May.
Time for another Bitcoin “sell-side liquidity crisis?”
As of Thursday, the latest date for which figures are available, there was 2.399 million BTC available across major exchanges. May’s low measured 2.390 million.
Bitcoin traders have thus reversed a deposit trend that ensued during the mid-May price upheaval, which points to a clear return to an investment-focused — not speculation-focused — mentality.
Such a crisis, or “supply squeeze,” has formed a common narrative in recent weeks, reinforced by healthy buying up of excess liquidity from Tuesday’s price dip.
It’s not just retail — derivatives platforms have also seen major withdrawals of BTC this week, while the overall BTC supply is becoming less mobile.
Data from fellow on-chain analytics firm Glassnode confirmed that on Friday, the section of the supply, which last moved one to two years ago, reached a three-year low.
Those who last moved BTC to an address between September 2019 and September 2020 are, therefore, not touching their holdings.
Bitcoin support levels suggest $43,000 floor
In his latest YouTube update, Cointelegraph contributor Michaël van de Poppe denied any idea that Bitcoin had entered a bear market, with nearby levels tipped to provide support.
These are $45,700, which should give way to between $43,000 and $44,000 if it fails.
“On the upside, we also know that $46,700 is still a very important resistance level,” he added.
“If that cracks, I think the chances that we’re going to break through $47,500 all the way towards $50,000 is significant, and that will bring strength to the altcoin markets as the altcoins will just follow suit.”