Bitcoin exchange reserves dropped to lowest levels in years amid the leading cryptocurrency’s failure to break above the psychological resistance of $100,000.
Bitcoin reserves on digital asset trading platforms have dropped to their lowest levels in years, data from blockchain analysis platform CryptoQuant confirms. Meanwhile, the market-leading digital asset has failed to retain price action above the $97,000 price level, suggesting a lack of buying pressure for a sustainable rally towards the much-anticipated $100,000 price level.
According to CryptoQuant data, a massive 171,000 BTC $94 751 24h volatility: 0.3% Market cap: $1.88 T Vol. 24h: $23.33 B have been transferred from digital asset trading platforms after pro-crypto candidate Donald Trump secured victory in the 2024 United States presidential elections. The billionaire has made several promises in favor of cryptocurrencies during multiple campaign speeches, instilling a bullish sentiment throughout the sector.
It is important to note that the Bitcoin exchange reserves have been on a downtrend since the year began, with a massive 3 million BTC being on exchanges in the beginning of 2024. However, the year is ending on a completely opposite note, with 2.64 million BTC currently on digital asset trading platforms.
The drop in Bitcoin exchange reserves is a bullish indication, since many Bitcoin holders could be moving their coins from exchanges to private wallets, expecting long-term gains under the Trump administration. This could further result in decreased selling pressure for the leading digital asset, which is currently trading at $95,744.51, as per CoinMarketCap data.
A major psychological barrier at the $100,000 price level exists for Bitcoin, and in order to break above it, the virtual currency needs a massive surge in the buying volume. In the past 24 hours, the trading volume of BTC dipped 15.5% to $59.74 billion, indicating that investors are diverting their money to other cryptocurrencies since altcoins remain bullish in the past 24 hours.
Increasing Accumulation of BTC
The accumulation of Bitcoin remains on the rise, as clear from the chart provided by TradingView below. With the A/D line continuing to print higher highs, investors can expect a slight distribution to occur in the short term before the market leader skyrockets above the $97,000 price level.
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Source: TradingView
Moreover, the Relative Strength Index reads a value of 62.05, which means that the bulls are overall in control of the Bitcoin price trajectory. Additionally, the RSI line is back from the overbought levels, which suggests that the price correction is almost ending, and a sideways consolidation might eventually lead to BTC making a move towards its all-time high of $99,655.50.
As reported earlier, investors can expect BTC to skyrocket once the profit-booking cools down amid major institutions like MicroStrategy and MARA making significant investments in the leading digital currency.
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