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 recently analyzed the bear market, the price actions of some altcoins, and why Q4 could mark the bottom. Here’s 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.
The Altcoin Analyst observed that the numbers sound bullish considering the comprehensive 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.
BTC Rally Post Halving?
The bull market cycle is still in its exponential stage. One year after its halving event, Bitcoin usually experiences its biggest rally. Hence, the primary objective is to accumulate as much Bitcoin as possible in anticipation of that rise because, according to analysts, Bitcoin tends to rally dramatically following the halvings. The next 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 the tweet by cryptocurrency trader and analyst rekt capital
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, who stated that the price of Bitcoin (BTC) will probably bottom out 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’s value has decreased by 2% during the past 24 hours, and at the press time, it is trading at $22,868.