Coinspeaker Bitcoin (BTC) Price Increases Odds of Bullish Rebound as Exchanges’ Supply Declines
Bitcoin (BTC) price has significantly lowered the rate of falling trend in the past few weeks, signaling potential bullish sentiment in the short term. The flagship coin has been attempting to defend the support level above $57k despite the high fear of further capitulation by the end of September.
From a technical standpoint, experts believe Bitcoin price has been forming a bullish flag in the past few months, in preparation for an uptrend breakout in the fourth quarter. Moreover, historical data shows that the Bitcoin price tends to perform better in the fourth quarter.
However, the bearish outlook could be sustained if Bitcoin price consistently closes to $54K in the coming weeks. In such a scenario, Bitcoin price could drop towards the next liquidity range between $48K and $50K.
Bitcoin Price to Benefit for Shifting Economic Outlook
Amid the stabilizing economic outlook in Japan and Europe, the Bank of Canada lowered its interest rate to 4.25 percent on Wednesday, the third time since June. As a result, economists believe the Fed will initiate the first interest rate cuts since the Covid-19 pandemic on September 18.
Although the ongoing economic shift around the world could be a sell-the-news event, the ultimate impact will be a major bull run, especially for risky perceived investments including Bitcoin.
Already, the cash outflow from the US spot Bitcoin ETFs has significantly declined after registering six consecutive days of bleeding.
On Wednesday, the US spot Bitcoin ETFs registered a net cash outflow of about $37 million, down from over $287 million on Tuesday.
Meanwhile, market data from CoinGlass shows that the supply of Bitcoin on centralized exchanges has significantly declined in the last few months, amid high bearish sentiment. Precisely, the supply of Bitcoin on CEXs has declined from 2.68 million to about 2.38 million in the past five months.
During the same period, Bitcoin price declined from its all-time high above $72K to around $56.9K on Thursday, September 5. Historically, Bitcoin price tends to rebound strongly as the supply on exchanges exponentially falls after the halving event.
Crypto Picture
Bitcoin dominance in the crypto sector has been on a rising trend since the FTX collapse in late 2022, but the uptrend rate has significantly declined in the past few months. The approval of spot Ether ETFs in the United States and other jurisdictions and the approval of spot Solana ETFs in Brazil have played a crucial role in increasing confidence in the altcoin sector.
As a result, Bitcoin dominance is predicted to reverse in the near term and pave the way for the much-anticipated altseason. The meme coin space is expected to remain a hot topic in the ongoing macro bull run as more blockchain emphasizes them to ensure mainstream adoption of Web3 projects.
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Bitcoin (BTC) Price Increases Odds of Bullish Rebound as Exchanges’ Supply Declines
