Bitcoin price eyes $41,000 target with declining BTC balance on exchanges
- Bitcoin worth $1 billion has been withdrawn from exchanges in the last two weeks.
- The SEC asked for public feedback on Franklin Templeton’s Spot Bitcoin ETF, fueling anticipation of approval.
- Analyst predicts Bitcoin price rally to its $41,000 target in December.
Bitcoin price eyes a bullish breakout as BTC price hovers close to $38,000, early on Wednesday. Market participants anticipate a bunch of approvals on Spot Bitcoin ETFs, as the US Securities and Exchange Commission (SEC) asks for public feedback on Franklin Templeton’s ETF application.
Daily Digest Market Movers: Bitcoin leaves exchanges in large volumes, SEC invites feedback on Franklin Templeton ETF
- Based on data from crypto intelligence tracker, Glassnode, BTC tokens worth nearly $1 billion have been withdrawn from exchanges in the last two weeks.
Bitcoin balance on exchanges
- Willy Woo, an on-chain crypto analyst notes that Bitcoin flows have made a strong flip to moving off exchange platforms. Woo admits to having seen similar swings towards buying during previous market bottoms.
Bitcoin exchange flows
- Alongside Bitcoin outflow from exchanges, the SEC has asked for public feedback on whether to approve or disapprove Franklin Templeton’s spot Bitcoin ETF application. The regulator initially said it would take more time to make a decision, however the SEC has now changed its stance and seeks public opinion. This has fueled hopes of spot Bitcoin ETF approvals.
- Another catalyst supporting a bullish thesis for Bitcoin price is the rising exchange reserves of stablecoins. Analysts at Santiment note $15.23 billion in Tether is held in the top 10 USDT exchange wallets. This represents buying power and anticipation of demand for Bitcoin.
Tether held by exchange wallets hits $15.23 billion
Technical Analysis: Bitcoin price eyes $41,000 target in December
Pseudonymous crypto analyst, Crypto Faibik, evaluated the Bitcoin price trend and noted that the $38,000 resistance is weakening. Faibik anticipates an ascending triangle upside breakout. A successful bullish breakout could send Bitcoin to $41,000 in December.
BTC/USD 1-day chart
At the time of writing, Bitcoin price is $37,939 on Binance. BTC yielded 6.15% weekly gains and 9.88% monthly gains for holders.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
