Bitcoin Exchange Balances Plummet, Potential Supply Shock Sparks Debate

Exchange balances for Bitcoin have sunk to multiyear lows of around 2.19 million BTC, raising questions about a potential supply shock. This decline, which has been ongoing for over a year, suggests that fewer coins are currently available on exchanges, potentially boosting scarcity and driving future price surges if demand takes off. However, current market dynamics present a mixed picture. 50-day, 100-day, and 200-day moving averages (EMAs) remain below the Bitcoin price, indicating a bearish trend. Despite recent rebound attempts, the price has struggled to regain momentum and hasn’t overcome key resistance levels.