Key Points
- Bitcoin reserves on trading platforms have hit the lowest levels in years.
- Bitcoin’s price struggles to maintain above $97,000 amidst a decrease in buying pressure.
Bitcoin reserves on digital asset trading platforms have reached their lowest levels in years, according to data from blockchain analysis platform CryptoQuant. At the same time, the leading digital asset has struggled to maintain its price above the $97,000 mark, indicating a decrease in buying pressure for a sustainable rally towards the anticipated $100,000 price point.
As per CryptoQuant data, there has been a significant transfer of 171,000 BTC from digital asset trading platforms following the 2024 United States presidential elections, which saw pro-crypto candidate Donald Trump emerge victorious. Trump’s pro-crypto promises during his campaign speeches have instilled a bullish sentiment within the sector.
Decrease in Bitcoin Exchange Reserves
Bitcoin exchange reserves have been on a downward trend since the beginning of the year. At the start of 2024, there were 3 million BTC on exchanges, but the year is ending with 2.64 million BTC on trading platforms.
This decrease in exchange reserves is seen as a positive sign, as it suggests that many Bitcoin holders are moving their coins from exchanges to private wallets in anticipation of long-term gains under the Trump administration. This could result in less selling pressure for Bitcoin, which is currently trading at $95,744.51, according to CoinMarketCap data.
The $100,000 Psychological Barrier
For Bitcoin to break above the psychological barrier of $100,000, a significant surge in buying volume is required. However, in the past 24 hours, Bitcoin’s trading volume has dipped by 15.5% to $59.74 billion. This suggests that investors are shifting their focus to other cryptocurrencies as altcoins have remained bullish over the past 24 hours.
The accumulation of Bitcoin continues to rise, as indicated by the chart provided by TradingView. With the A/D line continuing to print higher highs, investors can expect a slight distribution in the short term before Bitcoin potentially surges above the $97,000 mark.
Furthermore, the Relative Strength Index (RSI) reads a value of 62.05, indicating that the bulls currently have control over Bitcoin’s price trajectory. The RSI line is back from the overbought levels, suggesting that the price correction is nearing its end and a sideways consolidation could lead to Bitcoin moving towards its all-time high of $99,655.50.
It has been reported that once profit-booking cools down, investors can expect Bitcoin to skyrocket. This is due to major institutions like MicroStrategy and MARA making significant investments in the leading digital currency.
