Although the number of coins deposited on exchanges has decreased, it is still unclear whether the bulls have regained control. The drop in the price of Bitcoin has affected other cryptocurrencies; so many investors have withdrawn their holdings.
The price of the pioneering cryptocurrency seems to be heading back to USD 60,000. However, the number of transfers from Bitcoin addresses to exchanges recently reached a new 13-month low of 4,197.9, according to Glassnode.
The metric tracking the number of unique addresses that send funds to exchanges had recorded a 13-month low of 4,202.91 on November 24th.
Curiously, exchange users deposited an increasingly large number of coins during the 2018 bearish market. The exact opposite is currently happening, but there are no confirmations that the bulls have regained control.
In that regard, Bloomberg analyst Mike McGlone recently predicted that next year could be bullish for Bitcoin. The crucial question near the start of 2022 is whether it is reaching a peak or consolidating an upward market trend.
Where Investors Prefer to Keep their Bitcoin
There has been a reduction in the amount of Bitcoin on exchanges in recent weeks. That seems to indicate that investors prefer to keep their crypto assets outside those platforms, waiting for a rise in the price.
The drop in the value of Bitcoin has also affected other cryptocurrencies such as Ether (BTC). The fear of losing their money has led many investors to withdraw their cryptocurrencies from the market.
Most investors having their crypto assets in cold wallets usually move their Bitcoin to benefit from high prices. However, the current volatility of the pioneering cryptocurrency has caused them many losses.
Despite the drop in the value of Bitcoin, the reserves of coins on exchanges are also declining. That is a sign that holders continue to move their BTC to cold wallets waiting for a price rise in the long term.
An analyst predicts the price of Bitcoin will soon reach record levels
Cryptocurrency analyst Kevin Svenson believes that Bitcoin will experience strong growth before reaching record levels soon. He used the so-called three peaks and domed house pattern to predict the future of the cryptocurrency.
The expert said that the price of Bitcoin saw three growth peaks between March and May. He also noted that it fell and returned to those highs in November, which reflect the primary characteristics of the pattern.
Svenson believes the price of the pioneering cryptocurrency has to experience a sharp rise (to the ceiling) after staying at the current level (first floor). Everything suggests that the support level will reach above the three peaks and the first floor.
According to that pattern, the price of Bitcoin should move above USD 70,000, Svenson said. He also predicted that a new market structure could emerge for at least a short period. Concerning the post-ceiling stage, he thinks there will be a fall like the framework of this pattern has recorded several times.
Bitcoin is currently trading at around USD 47,691 and has accumulated a profit of 1.0% in the last 24 hours. Its daily trading volume is above USD 27.6 billion, and its market capitalization is about USD 901 billion, according to CoinGecko.
By Alexander Salazar
