The blockchain intelligence platform Santiment recently posted a thread on its X account showing how the exchange supply for Bitcoin (BTC) and Ethereum (ETH) has consistently declined. Santiment also revealed that USDT supply on exchanges surged in exchanges as traders continued to hold on to the two leading crypto assets despite the bearish market conditions.
BTC And ETH Supply Drop As USDT Climbs
According to Santiment, a notable trend is a rise in the exchange supply of Tether (USDT), the leading stablecoin. The asset’s supply has steadily increased over the past six months as BTC and ETH recorded significant drops.
In addition, the increased availability of USDT on exchanges indicates that investors and traders are preparing to explore profitable opportunities in the crypto market following a brief bearish spell. As the availability of the leading stablecoin continues to grow, it paints a picture of a market ready for the bulls’ action.
In addition, the USDT accumulation illustrates the current sentiment of market participants as they seek to accumulate more of this crypto asset. As a result, the surge in demand could put upward pressure on prices, paving the way for a bullish market momentum.
The blockchain analytic platform backed its post with a statistic showing that 24.1% of USDT’s total supply is circulating on various exchanges and trading platforms. The figure represents the highest USDT supply on exchanges since March 2023, indicating a significant increase in trading activity.
In contrast, the total BTC supply in exchange platforms is 5.9%, while ETH has 8.5%, highlighting the volatile nature of the crypto market.
BTC And ETH Price Action
Meanwhile, CoinMarketCap data shows that ETH has surpassed BTC in price gains over the last 24 hours. In addition, the leading altcoin saw a 1.0% price spike, pushing its value to $1,638.
On the other hand, BTC experienced a 0.9% uptrend within the same period and trades at $26,586, according to current on-chain data. An analysis of BTC’s price chart indicates that the leading digital asset is out of the declining wedge pattern that has remained on its daily chart over the previous month.
Should this uptrend continue, the value of BTC may test the next significant resistance level at $28,200 next week. However, a spike in profit-taking among traders could cause a downward pressure on the asset, causing its price to breach the immediate support level at $26,000.
In such a scenario, the ensuing sell-offs could trigger a further price decline, potentially pushing Bitcoin’s value down to $24,000. Like BTC, ETH is also out of a descending wedge pattern that was constantly displayed on its daily chart last month.
With its renewed momentum, the altcoin may attempt to flip the $1,690 resistance into solid support before continuing its upward movement toward the next price resistance level at $1,775.
