The quantity of Bitcoin (BTC) on crypto exchanges has continued to fall, with recent records showing the lowest level reached in recent times.
Recent data from CryptoQuant shows Bitcoin supply across exchanges has dropped to a five-year low. This dynamic in comes amid a bullish price movement in the market.
Bitcoin on Exchanges Is Slipping – Implication
CryptoQuant’s data shows investors continue withdrawing their Bitcoin from major centralized crypto exchanges.
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Comparing this pattern to the notable price increase, CryptoQuant’s analyst Gaah said the developing shortage may aggravate buying pressure.
Gaah interpreted the current scenario as a change in investors’ behavior. According to the analyst, more investors are choosing to remove their assets from exchanges for long-term storage in private wallets.
This movement has remained consistent since 2022, reducing the amount of Bitcoin available for immediate sale. This trend has continued to create buying pressure in a tight supply environment.
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BTC reserves on exchanges hit lowest since November 2018
“This movement reduces the supply available for immediate sale, creating buying pressure in a tight supply environment.” – By @gaah_im
Read more 👇https://t.co/hUh0l8s1x5 pic.twitter.com/qGZNSraonc
— CryptoQuant.com (@cryptoquant_com) November 15, 2024
Reduced exchange reserves generally indicate longer-term holding sentiment. This ongoing decline in Bitcoin liquidity, especially during high demand, may cause a supply squeeze, raising prices.
The CryptoQuant analyst further noted that the situation suggests increased investor confidence in the leading cryptocurrency.
According to Gaah, these investors perceive Bitcoin as a store of value in a global economic context of uncertainty and high inflation.
While this scenario signals a potentially more volatile market, Gaah said it also indicates a more resilient Bitcoin market.
Gaah believes the market could open up space for new price peaks with less selling pressure and dominance of long-term holders.
Bitcoin Price and the Market Rally Trend
Bitcoin price recently rallied to an all-time high of $93,244. It may reach that level again since its reserves are still running low on exchanges.
As of this writing, BTC was trading at $89,728, demonstrating a 24-hour price increase of 1.2%. Monthly gains stand at 31.8%, while the yearly return has reached 146%.
The fundamentals surrounding the price of Bitcoin support this bullish growth trend. From the Bitcoin halving to institutional adoption and Bitcoin ETF, many considered the rally long due.
Meanwhile, Bitcoin is not the only cryptocurrency experiencing bullish momentum. Ethereum (ETH), the second-largest cryptocurrency, has increased 4.3% in the past week.
Other top altcoins, including Solana (SOL) and XRP, surged by 6.53% and 60.7% within seven days. The ongoing market rally included top memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB).
In the last week, DOGE and SHIB spiked by 88% and 28%, respectively. The surge in the crypto market came after Donald Trump won the US presidential election.
Tagged the “Crypto President,” many believe his administration will come with clear regulations for the industry.
Is $100,000 the Next Stop
Analysts claim Bitcoin price could soar as high as $100,000 in the next few months. The Bitcoin price chart shows crucial psychological support and resistance levels at the $100,000 level right now.
If Bitcoin overcomes this barrier, the next targets may exceed $100,000. The $80,000 level is a strong support cushion in case of a pullback.
Bulls would need to defend this level to keep the upward momentum going. The recent surge in Bitcoin’s price above $93,000 is noteworthy.
If the current momentum continues, the coin will confirm its price discovery phase, which might fuel its exponential growth.
Disclaimer
The information provided in this article is only for educational and informational purposes and should not be considered financial or investment advice. We are not licensed financial advisors. Always conduct your research and seek guidance from a certified financial professional before making any investment decisions.
