Bitcoin received a minor push just before the previous day’s close and almost reached one of the interim resistance levels but failed to surpass $26,500. Nevertheless, the BTC price continues to trade above $26,200 at the moment. While the bulls manifest some strength, the traders remain pessimistic about the markets. Despite the minor jump, Bitcoin has not built trust among market participants to maintain the prevailing trend. Hence, the traders may be compelled to take out nominal profits every now and then.
The balance on the exchanges is one of the on-chain indicators used to determine the traders’ sentiments. If the trader is confident in the impending rally, he tends to store his holdings away from the exchanges, in his cold storage, with the idea of holding for the long term. This is when the supply on the exchanges decreases, flashing bullish signals for the crypto.
However, as per the data from the Santiment, the supply over the exchanges has been rising, indicating the traders are all set to extract small profits at minor upswings.
Although BTC’s price has had a minor jump, returning back above $26,300, the 3.1% increase in BTC’s supply over the exchanges raises minor concerns. However, the BTC price continues to hold above the crucial support at the 200-week MA, which keeps up the bullish hopes. It is worth noting that August and September have been terrible for Bitcoin, and the BTC price is also feared to face a death cross soon.
Therefore, it is quite viable that the traders could be pessimistic about the markets, as these short-term, minor jumps have trapped them for a long time. However, one of the prominent analysts, Michael van de Poppe believes that this could be the final correction before the Bitcoin halving. And if the markets survive the bearish September, the upcoming phase could be extremely bullish.
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