The total amount of Bitcoin held across all exchanges dropped dramatically last week, a development that, based on past performance, was seen favorably for the Bitcoin market but is also associated with the potential for BTC to bottom, most likely in the fourth quarter.
Altcoin Daily analyzed the recent bear market, the price behavior of some altcoins, and why Q4 could mark a bottom. Here is a summary.
Why Has Bitcoin’s Exchange Balance Dropped So Sharply?
The overall balance of Bitcoin across all exchanges declined by 4.1% during the last four days of July, from 2.587 million to 2.48 million, according to the most recent data.
Altcoin analysts observed that the numbers are bullish in view of the broader market report.
People are taking their Bitcoin off of exchanges and withdrawing it, which suggests that they don’t have any immediate plans to sell it. It is a highly bullish indication, but he adds that it’s important to remain wary.
After BTC Rally Stopped?
The bull market cycle is still in its exponential phase. A year after its halving event, bitcoin typically experienced its biggest rally ever. Therefore, the primary objective is to accumulate as much bitcoin as possible in anticipation of that increase, as bitcoin rebounds dramatically after the halving, according to analysts. The next one is scheduled for April 2024.
Bitcoin to Bottom in Q4?
Moving ahead in his video, the analyst digs into why BTC will touch its bottom in Q4 as per the bulls. He mentioned that the current market situation could lead to BTC stepping to the bottom in Q4.
He cited tweets from cryptocurrency trader and analyst Reckitt Capital, who said that the price of bitcoin (BTC) could be lower in the fourth quarter of 2022.
He also indicated signs by citing earlier significant historical metrics. In 2015, Bitcoin bottomed 547 days before the halving, and 517 days before in 2018. If this pattern is to be believed, then BTC will see its bottom in Q4.
Bitcoin has lost 2% in value over the past 24 hours, and as of press time, it is trading at $22,868.
