Bitcoin hikes by 2% to hit $26K
- BTC added over 2% to its price to close the day at over $26,000.
- BTC supply on exchanges has been on the rise after its previous decline.
The price of Bitcoin [BTC] has recently experienced a notable increase of over 2%, marking the first significant uptick in weeks. This rise has subtly impacted the overall direction of exchange activity. However, what has been the general trend in supply on exchanges over the past few weeks?
How much are 1,10,100 BTCs worth today?
Bitcoin sees a slight but impactful rise
On 7 September, Bitcoin exhibited an upward trend when viewed on a daily timeframe at the close of trading. The chart revealed that BTC concluded trading with a price increase of over 2%, exceeding $26,000.
This marked a notable event as, apart from a price surge of more than 6% on 29 August, it had been weeks since Bitcoin had experienced a rise of this magnitude. Additionally, it broke the $26,000 price barrier for the first time in over a week.
As of this writing, Bitcoin had sustained its upward momentum and was trading at approximately $26,300, albeit with a gain of less than 1%. Furthermore, this slight price increase has pushed it above the neutral line on its Relative Strength Index (RSI).
This also signified a significant development, as it had been over a week since it crossed this threshold.
Bitcoin holders moving to take profit
As per a Santiment report and accompanying chart, Bitcoin has witnessed a surge in its supply on exchanges over the past two weeks. Examining the chart, it became apparent that the supply on exchanges had declined since 14 August.
Initially, it hovered around 5.9%, but by 24 August, it had dropped slightly to 5.8%. However, as of this report, it had rebounded to approximately 5.96%, nearing the levels observed on 14 August.
This observation suggested that some Bitcoin holders took modest profits by moving their holdings onto exchanges. Nevertheless, it remains uncertain whether this trend will persist should the price continue to rise.
The trend of the BTC’s exchange flow
Based on data from CryptoQuant, the exchange Netflow on 7 September indicated that more Bitcoin entered exchanges than left, with a Netflow of approximately 877. However, as of this writing, there has been a significant reversal, with more BTC leaving exchanges.
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The Netflow had thus turned negative, measuring around -2,600 at press time.
The overall trend in the cumulative flow by the end of the week will be crucial in determining whether we are observing an accumulation of BTC on exchanges or a trend of BTC leaving exchanges.