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Pursuing a major price drop of Bitcoin (BTC)market sentiment decreased back to high levels of fear, indicating that investors are becoming increasingly cautious and risk-averse. Despite this trend, on-chain data analytics provider CryptoQuant has revealed a significant increase in data analytics BTC buying momentumcausing Bitcoin balances on several exchanges to fall to a six-year low.
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Bitcoin reserve on exchanges sees a sharp plunge
Of continued market volatility and Bitcoin’s recent decline, on-chain data has identified a significant shift in the cryptocurrency’s market activity. CryptoQuant’s facts has revealed a substantial drop in the total amount of Bitcoin held by various Centralized Exchanges (CEXs) in the market.
From October 2, the Bitcoin balance from centralized exchangesAccording to Coinglass, fed up with 2.34 million, the lowest number in six years. This sharp decline contrasts with the 3.05 million Bitcoin held on exchanges in January this year, highlighting a significant reduction in available supply in just a few months.
Normally, a low Bitcoin balance on centralized exchanges can be an indication of one impending price increaseas less BTC available on these platforms can put upward pressure on the price due to limited supply. The reduction in Bitcoin reserves could also indicate a shift in investor sentiment from selling to accumulating.
Next The price drop of Bitcoin to around $60,000, several exchanges experienced massive investor withdrawals. In one of his QuickTake blogs, CryptoQuant described this large-scale withdrawal as “the largest outflow of Bitcoin from the exchanges since November 2022.”
This development also follows the recent one increase in the accumulation of Bitcoin by whales and a rise in demand for it Explore Bitcoin Exchange Traded Funds (ETFs). Additional information from CryptoQuant reveals that institutional investors moved from net selling 5,000 BTC on September 2 to buying 7,000 BTC by the end of the month. This represents the highest daily purchase of Spot Bitcoin ETFs since July 21.
#Bitcoin Demand for US spot ETFs is increasing.
They went from net sales to 5K $BTC on September 2 to buying 7K BTC at the end of September – the highest level since July 21.
In the first quarter of 2024, spot ETFs bought almost 9K #BTC daily, driving prices to new highs.
If this trend continues, prices could rise… pic.twitter.com/6EQ9JXUzdw
— CryptoQuant.com (@cryptoquant_com) October 4, 2024
Furthermore, Spot ETFs bought nearly 9,000 BTC daily in the first quarter of 2024, pushing prices to new levels. CryptoQuant also announced that if this increase in demand continues, the Bitcoin price may rise further.
Analyst remains bullish on BTC and predicts a $100,000 rise
A popular crypto analyst known as ‘The Bitcoin Therapist’ on X (formerly Twitter) has done just that exposed a huge bull flag on Bitcoin’s price chart. The analyst revealed that this bull flag had formed over the past seven months, signaling a possible price increase in the future.
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The analyst shared a video view of his Bitcoin chart analysis and revealed that if the price of BTC can break above the $66,000 resistance level, this could happen. skyrocket to new all-time highs about $80,000 to $90,000. He also expressed strong bullish sentiment The future price of Bitcoinwith an even higher price increase to $100,000 predicted.
Featured image from CNN, chart from TradingView