Crypto News: The weekend often brings a lull in the crypto market’s activity, with prices remaining relatively stagnant. However, an imminent breakout for Bitcoin (BTC) is predicted by crypto trader and analyst, Crypto Rover, adding a glimmer of excitement to the market this week.
Bitcoin On Brink Of Breakout?
The anticipation stems from the formation of a parallel wedge on BTC’s 3-day chart. The wedge pattern is characterized by a converging pair of support and resistance levels at one point to the right and a narrowing price channel. When the price moves past the resistance or support and establishes a new trend, the pattern is broken. However, it is important to note that this potential breakout may offer short-term relief rather than a sustained rally.
However, amidst the potential positive breakout, there is a looming possibility of BTC experiencing a price crash to $25,000. The general sentiment in the market remains partially bearish, with memecoiners appearing to be the most active participants, placing significant bets on the crypto market.
BTC Supply On Exchanges at Lowest
In contrast to the weekend predictions, data from crypto analysis platform Santiment reveals a different trend among crypto investors. Lately, investors have been buying and withdrawing their coins from crypto exchanges at a rapid pace. Santiment reports that BTC’s circulating supply on exchanges is currently at 5.7%, the lowest level seen since December 2017 when it first reached the $20,000 milestone. Similarly, ETH’s circulating supply stands at 10.1%, marking its lowest since its inception in 2015. This decline can be attributed to ETH holders opting to stake their coins instead of keeping them on exchanges, seeking to secure long-term profits.
📉👌 #Bitcoin & #Ethereum both continue to quietly see more and more of their existing supplies move into self custody. Though not a perfect indicator, declining coins on exchanges generally hint at future bull runs, given enough time playing out. https://t.co/N1Icon7U19 pic.twitter.com/f5YXzqmZNf
— Santiment (@santimentfeed) May 20, 2023
Should the anticipated breakout materialize and move in a positive direction, BTC could climb back above the $27,000 mark. Conversely, if the price breaks below the next support level at $26,300, a sharp drop to the subsequent support level at approximately $25,000 may follow.
As things currently stand, the price of BTC is exchanging hands at $26,924.76, representing a gain of 0.39% over the past twenty-four hours in contrast to an increase of 0.48% recorded over the last seven days. Additionally, it should be noted that BTC’s technical analysis (TA) indicators at CoinGape’s price tracker presently recommend a strong sell position, advising “sell” at level 11 and a “buy” at level 5 by its moving averages.
Also Read: Rich Dad Poor Dad Author Predicts Bitcoin At $100K, Calls It Insurance Against Corruption
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.