Bitcoin Exchange Balances Hit All-Time Low as Price Surges 8%

Bitcoin's balance on cryptocurrency exchanges has reached a new all-time low, with the total amount of BTC held on exchanges dropping to 2.07 million. This decline is particularly notable on major exchanges like Coinbase Pro and Binance, which hold the highest reserves of 638,226 BTC and 535,797 BTC respectively. Other exchanges collectively hold approximately 895,270 Bitcoins, indicating a rising trend of accumulation among investors and whales.

This reduction in exchange balances suggests a decrease in short-term selling pressure, as investors appear to be holding onto their coins rather than selling into strength. Historically, spikes in BTC inflows to exchanges have coincided with market tops and subsequent corrections. However, the current data indicates a different trend, with monthly inflows to Binance falling below bear market benchmarks despite Bitcoin trading above $105,000. This signals a shift in investor behavior, with a more confident and long-term investor base.

Bitcoin's recent price movements have also been noteworthy. The price of BTC has jumped over 8% in 72 hours, from $98,500 to over $107,500. This surge has led to an increase in market capitalization to $2.14 trillion, with Bitcoin's dominance rising to over 65% for the first time since January 18, 2021. Technical indicators, such as the Exponential Moving Averages (EMAs) and the Stochastic RSI, suggest increasing volatility and a positive outlook for Bitcoin this week.

A sustained bullish action could push the BTC price toward its resistance level of $109,631 or upper target price of $111,970 during the coming days. However, a bearish reversal may pull the price of Bitcoin toward its immediate support trendline of $107,218 soon. Additionally, it could retest its lower support level of $104,810 if the bearish sentiment intensifies this week.

Bitcoin's recent move back above its 50-day exponential moving average (EMA) has also been noted as a bullish signal. Historically, this technical level has acted as strong support during corrective phases within uptrends. The analyst added that Bitcoin's recent reclaim of the 50-day EMA could set the stage for a rally toward $120,000. Additionally, the rising cumulative volume delta (CVD) spot indicator suggests strong spot demand for BTC, with prices around the $108,000 level.

Bitcoin's bull pennant on the daily chart targets 54% gains to $165,000, indicating a potential upward trend. The price of Bitcoin has increased by 10% to $108,200 from its local lows of $98,400, reclaiming key support levels. This bullish pattern suggests that Bitcoin could continue its upward trajectory, potentially reaching new highs.

In summary, the decline in Bitcoin exchange balances and the reduction in inflows to major exchanges signal a shift in investor behavior, with a more confident and long-term investor base holding onto their coins. Technical indicators, such as the 50-day EMA and the CVD spot indicator, suggest strong spot demand and potential upside for BTC. However, the broader market environment remains complex, and any bullish momentum must be approached with caution.