When the price of Bitcoin exceeded $ 23,000, market volatility decreased. With Bitcoin trading in the recently discovered price range, it seemed to be closely tied to the $ 22,500 level. In fact, at the time of writing, Bitcoin was valued at over $ 23,000.
In such a scenario, $ 22,300 proves to be the level of assistance, an observation made by online analyst Joseph Young, based on his recent tweets. In fact, Binance and Bitfinex heat maps showed $ 23,500 as BTC’s major short-term resistance. However, does this mean that there is room for additional price rallies or a correction on the charts?
Now, this could be a difficult range for retailers to trade, just as there have been difficulties in finding prices above $ 20,000 in the last 4-6 weeks. The wall of beneficiaries that appeared after 19,800 USD may not be an obstacle to price, as the narrative “Supply shortage” is again at stake here.
Bitcoin exchange reserves || Source: BTC reserves
Based on data from Cryptoquant, Bitcoin’s foreign exchange reserves continued to decline. When Bitcoin struggled to find prices below $ 20,000, reserves dwindled. The active supply of Bitcoin 2Y-3Y and 5Y-7Y has steadily increased to the point where chain analysts were concerned about generating sufficient demand to absorb liquidity.
In fact, liquidity hit an ATH early last week on spot exchanges. Based on data from Whalemaps, Bitcoin is spent more than it was bought 3Y-5Y ago. Therefore, what has changed primarily since 2017 are supply and control entities. The main entities that control / influence the price of Bitcoin would be institutions. Rapid institutionalization could have changed the course of discovering Bitcoin prices as well as halving or market cycles.
Map of unused Bitcoin || Source: Whalemaps
Based on this chart, the largest volume of unused Bitcoins was purchased a year or less ago. In the last two weeks, the largest volume of unused Bitcoins is from 2018 and earlier. This is crucial because, as Willy Woo noted, despite the increase in liquidity, there is a wall for sale at $ 23,800.
How significant is such a sales wall for Bitcoin? Well, Bitcoin exchange reserves have fallen even further, to 2.34 million, and this may be the lowest level for spot exchanges in this market cycle. Ergo, this sales wall may not be so indicative of a massive sale, when combined with demand for spot stock exchanges and reserves.