While Bitcoin and altcoins are trying to combat the declines experienced in recent days, the countdown has begun for the highly anticipated BTC halving.
At this point, while investors were wondering whether there would be a new wave of decline in BTC and altcoins, a new report came from Bitfinex analysts.
Analysts pointed out that long-term investors' Bitcoin supply on the exchanges fell to the lowest levels in 18 months, and stated that this showed that long-term owners either continued to reduce their assets or removed their assets from the stock market.
“The basis for Bitcoin price dynamics is this week's halving; as the halving approaches, there has been a significant increase in Bitcoin leaving centralized exchanges and an 18-month decline in the inactive Bitcoin supply, which has not moved in over a year.”
“Movements Similar to December 2020 Are Observed!”
Pointing out that at this point, the current movements in Bitcoin are similar to December 2020, Bitfinex analysts said that all this data points to a possible growth phase.
“The current actions of Bitcoin holders and the situation for BTC are similar to December 2020, which was just before a significant rise. The current pattern suggests that we are entering a similar phase of growth experienced after December 2020.”
Analysts recently stated that the upcoming halving event, following the selling pressure in recent days, has brought Bitcoin to a crossroads.
Stating that funding rates have stabilized following the major liquidation event in the last two days that sent prices sharply lower, analysts said there are indicators that investors' attention has turned to the upcoming halving, including funding rates returning to normal.
At this point, Bitfinex analysts finally added that the decrease in supply on the exchanges, combined with the supply restriction caused by the upcoming halving, could lead to a further price increase in Bitcoin.
*This is not investment advice.
