Bitcoin supply on the exchanges has hit a new low for the first time in six years, providing a bullish outlook for BTC. This comes as flagship crypto continues to get new All-time highs (ATHs)with the $130,000 goal now in sight.
Bitcoin supply on exchanges reaches six-year low
Glassnode data shows that Bitcoin supply on exchanges has fallen to a six-year low of around 2.8 million BTC. The last time the BTC balance on exchanges This low was in June 2019, when the flagship crypto was trading around $8,745. This development confirms that investors are accumulating Bitcoin at an unprecedented rate.
CryptoQuant data also confirms this development, with the Bitcoin exchange reserve currently standing at 2.5 million BTC, even lower than what is shown on Glassnode’s dashboard. This is bullish for the BTC price as such massive demand usually precedes a major supply squeeze. This comes especially amid increased demand from institutional investors the BTC ETFs last week saw a weekly inflow of $3.2 billion, the second largest since its launch last year.
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This is because institutional investors are looking at Bitcoin as a safe haven as part of the trading downturn during this period of uncertainty caused by the US government shutdown. Thanks to increased demand, BTC is already up 9% this month and has recovered to multiple record highs during the ‘Uptober’ rally.
The Bitcoin price reached $126,000 yesterday for the first time ever and now appears on track to test the $130,000 mark. With the huge demand from the BTC ETFs, there is belief that the flagship crypto could reach this milestone this month. SoSo value data shows that these funds took in $1.19 billion in net inflows yesterday, their highest daily inflows this year.
BTC could break above $130,000
Crypto analyst Titan of Crypto has suggested that Bitcoin is on track to hit a new all-time high (ATH) above $130,000. He commented that BTC is testing the same trendline that it rejected a few weeks ago. This time, however, the weekly MACD crosses bullishly, which could trigger a rally above $130,000. His accompanying chart showed that a rally as high as $140,000 was possible if the flagship crypto flips $130,000 in support.
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Crypto analyst Mikybull Crypto also noticed this that Bitcoin is currently facing resistance around the current price level, making it an important level to keep an eye on. He added that a meaningful breakout above this level will occur BTC up to between $136,000 and $150,000.
At the time of writing, the Bitcoin price is trading around $124,500, up in the past 24 hours. facts from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com