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Bitcoin supply on exchanges is at an all-time low

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The supply of Bitcoin on exchanges is at its lowest level since January.

This was reported by Santiment, who publishes a graph that clearly shows the downward trend that began in mid-April, or more or less in conjunction with the price ATH.

The supply of Bitcoin on exchanges generally increases as the BTC they move to exchanges for sale.

Until October last year it was very high, but as the price increased, it began to fall significantly, reaching two lows in November and early January.

But then, with the incredible rise in price from $ 30,000 to almost $ 65,000, it started to rise again, until mid-April.

However, the maximum peak of this phase was reached in mid-May, or before the sudden crisis of May 19, probably a panic selling index.

Since then, the panic seems to have dissolved, so much so that the minimum peak of this phase was reached yesterday, only slightly higher than the minimum peaks of November and January.

According Santiment, BTC supply on exchanges is now close to 2021 lows, while off exchanges it has reached the level last seen in November 2018.

This implies a lower risk of liquidation at this time.

From this point of view, the current situation looks very different, if not the opposite, from the one before the May 19 flash crash, which raised the price to $ 30,000 for the first time after the end of January.

Since then, the price of bitcoin has continued to fluctuate in a range of first between $ 30,000 and $ 40,000, and then between $ 30,000 and $ 35,000.

Given that liquidation risks appear to be lower at present, a trend similar to that of the second half of May is unlikely to repeat itself.

In fact, this should generally be interpreted as an accumulation scenario, as also suggested by the growth of BTC held by whales, or a time when those who buy bitcoin on exchanges do so to withdraw and store them in the medium / long term in your own wallet.

In fact, if there are no events capable of drastically changing things, it is a bullish scenario, or at least a situation of relative stability that suggests future growth hypotheses, even perhaps in the short term.

However, 2021 has made us used to big and sudden changes, so the probability that something could suddenly disrupt the current scenario is there.

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