Bitcoin
Analyst Says “It’s Only a Matter of Time” Before Bitcoin Surpasses ATH – TradingView News
An analyst explained how Bitcoin’s availability for trading has silently declined during the asset’s recent consolidation phase.
Bitcoin may be in a good position to establish new all-time highs
In a new post on X, analyst Willy Woo discusses the recent trend in Bitcoin inventory on centralized exchange platforms.
The chart below shows how spot and paper BTC reserves have changed over the past few years.
NewsBTC
As the graph shows, Bitcoin in spot wallets has been decreasing in recent months. The total amount of these BTC held by central entities has now dropped to just 2.3 million.
It is also apparent that the total sum of BTC spot and “paper” (highlighted in purple) has decreased at the same time. Paper BTC here refers to cryptocurrency-related derivative products that do not actually require investors to own the asset.
So, given that the combined sum of exchange supply has fallen for the cryptocurrency, it appears that the decrease in spot BTC is not due to paper BTC replacing it.
Generally, the supply from exchanges is considered part of the supply of Bitcoin, which is “available” for trading. As such, due to the way supply-demand dynamics work, less of this available supply could be a constructive sign for the cryptocurrency.
From the chart, it is visible that this decline in exchange stock occurred during a period when the cryptocurrency’s price faced difficulties after establishing a new all-time high (ATH). As Woo notes,
While everyone was freaking out because the price of Bitcoin wasn’t rising in the last 2 months, the available BTC was being silently acquired and, most importantly, without printed paper BTC in its place.
Therefore, the fact that available supply decreased during that period could be a bullish sign for the currency. “It’s only a matter of time before BTC surpasses all-time highs,” says the analyst.
In another X post, Woo also discussed how capital flows into Bitcoin have started to increase again after previously recording a sharp drop.
As the chart shows, network inflows spiked alongside the all-time high but saw a major slowdown in the ensuing consolidation.
Inflows from spot exchange-traded funds (ETFs), highlighted in light green, also previously disappeared, but have now returned alongside these new capital inflows.
BTC Price
Bitcoin had recovered to $71,000 previously but appears to have fallen in recent days as it has now returned below the $68,000 level.