Following a great Bitcoin (BTC) price dropmarket sentiment knocked down has returned to strong levels of fear, indicating that investors are becoming increasingly cautious and risk averse. Despite this trend, on-chain data analytics provider CryptoQuant revealed a significant increase in Timing to buy BTCresulting in Bitcoin balances on several exchanges falling to six-year lows.
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Bitcoin reserve on exchanges suffers sharp drop
With continued market volatility and Bitcoin’s recent decline, on-chain data has identified a significant shift in the cryptocurrency’s market activity. CriptoQuant’s data revealed a substantial decline in the total amount of Bitcoin held by various Centralized Exchanges (CEXs) in the market.
From October 2nd, the Bitcoin balance from centralized exchangesAccording to Coinglass, sitting at 2.34 million, marking the lowest number in six years. This sharp decline contrasts with the 3.05 million Bitcoins held on exchanges in January this year, highlighting a significant reduction in available supply in just a few months.
Typically, a low Bitcoin balance on centralized exchanges can be an indication of a imminent price appreciationas less BTC available on these platforms could create upward pressure on its price due to limited supply. THE reduction in Bitcoin reserves It could also signal a shift in investor sentiment from selling to accumulation.
Following Bitcoin price drop to around $60,000, several exchanges experienced mass investor withdrawals. In one of his QuickTake blogs, CryptoQuant described this large-scale withdrawal as “the largest Bitcoin exit from exchanges since November 2021”.
This development also follows the recent increase in the accumulation of Bitcoin by whales and an increase in demand for Spot Bitcoin Exchange Traded Funds (ETFs). Additional CryptoQuant Information reveals that institutional investors went from net selling 5,000 BTC on September 2nd to purchasing 7,000 BTC by the end of the month. This represents the largest daily purchase of Spot Bitcoin ETFs since July 21.
#Bitcoin Demand for US spot ETFs is increasing.
They went from 5K net sales $BTC on September 2nd to buy 7,000 BTC at the end of September – the highest amount since July 21st.
In the first quarter of 2024, spot ETFs purchased almost 9 thousand #BTC daily, pushing prices to new highs.
If this trend continues, prices could rise… pic.twitter.com/6EQ9JXUzdw
-CryptoQuant.com (@cryptoquant_com) October 4, 2024
Furthermore, in the first quarter of 2024, spot ETFs were purchasing almost 9,000 BTC daily, driving prices to new levels. CryptoQuant also disclosed that if this increase in demand continues, the Bitcoin price could appreciate even more.
Analyst Remains Bullish on BTC and Predicts $100,000 Rise
A popular crypto analyst known as ‘The Bitcoin Therapist’ on X (formerly Twitter) discovered a huge bull flag on the Bitcoin price chart. The analyst revealed that this bull flag has formed over the last seven months, signaling a potential for price increases in the future.
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Sharing a video representation of his Bitcoin chart analysis, the analyst revealed that if BTC price can break above the $66,000 resistance level, it could skyrocket to new all-time highs about $80,000 to $90,000. He also expressed strong bullish sentiment towards Bitcoin future pricepredicting an even bigger price increase to $100,000.
Featured image from CNN, chart from TradingView