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Bitcoin has seen a significant drawdown from exchanges, reaching a low not observed since December 2017. As of today, Bitcoin's market value has impressively surged to $45,500. Despite this bullish trend, traders have maintained a stance of skepticism for the third consecutive week, suggesting that a cautious sentiment prevails on the market.
Bitcoin's price trajectory has recently undergone a successful reversal pushing its dominance over altcoins. The reduction in Bitcoin's supply on exchanges, now at a mere 5.3% of the total supply, indicates a strong holding pattern among investors. This outflow from exchanges could be a reflection of the ongoing rise of self-custody among crypto investors.
The market has witnessed Bitcoin's price cut through resistance levels, reaching an intraday peak of $46,225. This advance toward the upside signifies the asset's robust price breakthrough potential. However, the $47,000 threshold represents a massive resistance level on the chart and a historical point of breakdown. The ability of Bitcoin to breach and sustain above this price point would be an indicator of a rally continuation.
Bitcoin's recent price action has seen it test key moving averages, with the asset currently trading above short-term averages, indicating the potential for continued upward movement. However, the looming resistance at $47,000 stands as a formidable barrier that the cryptocurrency must overcome to sustain its upward trajectory.
The outcome of the $47,000 threshold test will likely set the tone for Bitcoin's market behavior in the coming weeks and could either confirm the asset's bull trend or lead to a correction.