Analyst: Bitcoin continues to recover, traders are preparing for further price gains

Data from CryptoQuant and Deribit suggests traders are bracing for further price gains as Bitcoin continues its recovery. A CryptoQuant chart shows that Bitcoin reserves on centralized exchanges fell to their lowest levels in years in August. The data also shows that Bitcoin supply on centralized exchanges has dropped significantly by 11% since the beginning of the year. Meanwhile, the price of Bitcoin has risen nearly 43% since early January. A reduction in the number of Bitcoins on exchanges typically weakens supply pressure and supports the potential for price increases. SynFutures co-founder Rachel Lin outlined derivatives market indicators that suggest traders are preparing for a bullish Bitcoin price move. Lin also pointed out: “It is worth noting that the top 10 open interest for Bitcoin and Ethereum are all call options, with no significant put options.” (The Block)