Bitcoin’s Supply On Exchange Tightens: Could a New Bull Run Be Just Weeks Away?
September 11 2024 - 8:30PM
NEWSBTC
According to market signals that have historically preceded major
price rallies, Bitcoin is gearing up for its next potential bull
run. A CryptoQuant analyst named ‘Tarek’ has
recently highlighted key indicators in a post on the
CryptoQuant QuickTake platform, suggesting that Bitcoin’s price
might soon experience a significant upward movement. These
indicators include declining Bitcoin reserves on exchanges and
increasing stablecoin reserves, which create an optimistic market
outlook. Related Reading: Is Bitcoin Heading For A Bear Market?
Analysts Weigh In On The Price Struggles Key Indicators Signal
Growing Buying Power According to the report shared by Tarek, over
the past several months, Bitcoin’s exchange reserves have been on a
downward trend, a phenomenon that often signals reduced selling
pressure. When investors move their Bitcoin to cold storage, it
limits the available supply on exchanges, which can result in a
tighter market. This shift in supply dynamics is generally seen as
bullish, suggesting that investors are holding their Bitcoin with
the expectation of future price increases. In contrast to the
decreasing Bitcoin reserves, Tarek highlighted that stablecoin
reserves on exchanges are also rising. Notably, stablecoins such as
USDT and USDC are widely used to store value during market
uncertainty, allowing traders to deploy capital quickly when the
right opportunity arises. The rising stablecoin reserves suggest
that market participants are preparing for a potential entry point,
further strengthening the bullish outlook for Bitcoin. This
combination of shrinking Bitcoin reserves and rising stablecoin
reserves creates an environment ripe for a price breakout. Tarek
noted: The combination of shrinking Bitcoin reserves and rising
stablecoin reserves sets the stage for a bullish price breakout.
With reduced Bitcoin supply and growing buying power, the market is
primed for a potential upward move. Historically, this
supply-demand imbalance has led to significant price gains.
Concluding the report, Tarek mentioned that the occurrence of a
major rally might be as close as in the “coming weeks,” noting: As
the market supply tightens and buying power builds, we could be on
the verge of a price rally. Investors should stay alert for a
potential breakout in the coming weeks. Bitcoin Current Market
Performance Amid the bullishness in Bitcoin’s on-chain data, the
asset still struggles to make a major move above the $60,000
psychological price level. So far, BTC has declined by 1.6% in the
past day and 2.3% in the past week, pushing its price below $57,000
once again to trade for $56,047 at the time of writing. Related
Reading: New ATH Incoming? Analyst Reveals Why Bitcoin’s Next Rally
Is Around the Corner Interestingly, despite the consistent decline
in BTC’s price, the daily trading volume of the asset appears to be
seeing an opposite trend, rising from below $15 billion last week
to above $34 billion. Featured image created with DALL-E, Chart
from TradingView
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