Bitcoin Price Surges 50% as 400,000 BTC Leave Exchanges

Over the past six months, a significant shift in Bitcoin's exchange reserves has been observed. According to on-chain data from CryptoQuant, over 400,000 BTC have left exchanges since December 2024, reducing the trading supply. This decrease is evident in the chart shared by Crypto Rover on June 16, which shows reserves dropping from around 2.8 million BTC in late December 2024 to 2.4 million by mid-June 2025.

During this period, Bitcoin's price experienced a substantial increase, rising from below $70,000 to over $105,000. This inverse relationship between price and supply on exchanges indicates that as assets moved off platforms, the price climbed. The data from CryptoQuant reveals that Bitcoin's availability on exchanges reached its lowest point in over a year, with the trend intensifying during May and June 2025. Concurrently, the price showed stronger gains, accelerating past the $90,000 mark. This timing suggests that large investors may have added to their positions as price momentum returned, creating conditions that could magnify the impact of new demand.

Analysts have confirmed this supply shift to private wallets. Sjuul Follings of Traders Union noted that the decrease points to reduced trading supply. CoinQuest echoed this trend, stating that the sharp decline may create a supply crunch if demand picks up. Large holders appear to be accumulating Bitcoin during periods of market hesitation, reducing the number of coins available for quick trading and shifting market dynamics. This change potentially increases sensitivity to future price swings.

Concurrently, Bitcoin's daily price chart has formed a classic "bullish pennant" pattern. This pattern appears when the price consolidates in a narrowing range following a sharp upward move, signaling potential continuation of the trend once the price breaks above the upper resistance. In this case, Bitcoin trades at $107,648. If this pattern confirms, the projected breakout target stands at approximately $127,342, reflecting an 18 percent increase from the current price, matching the height of the previous rally before consolidation.

The candlestick structure shows higher lows and lower highs forming a symmetrical triangle. This shape follows a clear upward flagpole that started in late April and peaked in early May. The pattern sits above the 50-day Exponential Moving Average (EMA), currently positioned at $103,000. Price holding above this level supports the bullish case. Volume has declined during the consolidation, which is typical for a pennant structure. A breakout above the upper red trendline, ideally supported by increased trading volume, would confirm the bullish continuation. If confirmed, Bitcoin may resume its previous uptrend and reach the projected target. However, the breakout needs strong momentum to sustain the move past immediate resistance near $110,000.