Journalist
Posted:
- BTC added more than 2% to its price to close out the day at over USD 26,000.
- The supply of BTC on the exchanges has risen after the earlier decline.
The price of Bitcoin [BTC] recently experienced a remarkable increase of over 2%, marking its first significant increase in weeks. This increase has subtly influenced the overall direction of currency activity. But what was the general trend in supply on the stock exchanges in recent weeks?
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Bitcoin sees a slight but impactful increase
On September 7, Bitcoin was on an upward trend as seen on a daily time frame at the end of trading. The chart showed that BTC closed the trade with a price increase of more than 2%, to above USD 26,000.
This was a remarkable event, as apart from a price increase of more than 6% on August 29, it had been weeks since Bitcoin had experienced an increase of this magnitude. In addition, it broke the $26,000 price barrier for the first time in more than a week.
Source: TradingView
At the time of writing, Bitcoin had maintained its upward momentum and was trading at around USD 26,300, albeit with a gain of less than 1%. In addition, this slight price increase has pushed the company above the neutral line of its Relative Strength Index (RSI).
This also marked an important development, as it had been over a week since this threshold was crossed.
Bitcoin holders move to make a profit
According to a Sanitation According to the report and accompanying chart, Bitcoin has witnessed a surge in supply on the exchanges over the past two weeks. As I studied the chart, it became clear that supply on the exchanges had declined since August 14.
Initially it hovered around 5.9%, but by August 24 it had fallen slightly to 5.8%. However, at the time of this report, it had risen back to about 5.96%, close to its August 14 level.
Source: Sentiment
This observation suggested that some Bitcoin holders were making modest profits by moving their holdings to exchanges. Nevertheless, it remains uncertain whether this trend will continue if the price continues to rise.
The trend of the exchange flow of BTC
Based on data from CryptoQuant, exchange Netflow indicated on September 7 that more Bitcoin entered exchanges than exited, with Netflow at around 877. However, at the time of writing, a significant turnaround has taken place, with more BTC entering exchanges left.
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The Netflow had therefore become negative and was approximately -2,600 at the time of writing.
Source: CryptoQuant
The overall trend in the cumulative flow towards the end of the week will be crucial in determining whether we see an accumulation of BTC on exchanges or a trend of BTC exiting the exchanges.