Analytical platform CryptoQuant data reveals that bitcoin BTC stored on crypto exchanges has declined to a new supply low.
A cryptoQuant contributor, Gaah, believes that Bitcoin reserves dropping to new lows this year indicates reduced selling pressure. He noted that if the demand is sustained, such a scenario is ideal for a bull run.
Some analysts believe the new supply lows might trigger Bitcoin to retest and break above $60,000.
CryptoQuant Analyst Identifies Possible Recover Pattern for Bitcoin
In a recent insights report, Gaah revealed that Bitcoin reserves on exchanges dipped by approximately 12.9% since January 1. This brings the amount of Bitcoin left on major exchanges to roughly $2.62 million.
$BTC reserves on exchanges hit new lows for the year
“Therefore, when there is less Bitcoin available on exchanges, there is less liquidity available for immediate sale.” – By @gaah_im
Read more 👇https://t.co/rg68joEXMP pic.twitter.com/MsUkjCs7HI
— CryptoQuant.com (@cryptoquant_com) August 29, 2024
The analyst also noted that BTC is moving to cold wallet storage, confirming investors’ interest in holding BTC long-term. These investors believe in Bitcoin’s price potential and hope for a possible rally ahead.
Historical data shows that the declining Bitcoin volume of exchanges signals a possible rally in Q4 2024. Gaah believes an increase in long-term BTC holders will improve market stability, resulting in a solid market structure.
Long-term holding will also reduce the rate of panic sales; when there is less BTC on exchanges, there will be less liquidity for immediate sales.
Trader MartyParty commented on the decline in exchange Bitcoin reserves, noting that Coinbase had under 1 million in its stock.
Continuing my coverage of ultra low Bitcoin reserves. @coinbase under 1m remaining. @binance down 44100 Bitcoin and had to move 30000 from their personal cold storage to support their exchange liquidity.
Something is happening. Triggered 4th August. pic.twitter.com/gp30JIITGF
— MartyParty (@martypartymusic) August 27, 2024
Also, Binance is down to 44,100 BTC despite transferring 30,000 Bitcoin from its cold storage to support exchange liquidity. MartyParty believes that something is happening, and it began on August 4.
14,600 Bitcoin taken off Coinbase today and 56,000 taken off exchanges the last week. That’s more than 4 months of mined supply. The supply shock will come soon because this is not sustainable.
— Bitcoin for Freedom (@BTC_for_Freedom) August 29, 2024
Similarly, the analyst Bitcoin for Freedom revealed that 14,600 BTC moved from the Coinbase exchange on August 29. Over the past week, 56,000 BTC has moved from crypto exchanges, representing over four months of mined supply. The analyst believes supply shock will come soon since supply is currently unsustainable.
Meanwhile, the realized capitalization of long-term BTC holders exceeded $10 billion this week. So, long-term holders still maintain their Bitcoin supply despite the price dip in the past week.
More Analyst Share Insights on Bitcoin’s Performance
Crypto trader Peter Brandt shared his views on the current state of BTC. He believes the bull market cycle in BTC will likely become the longest recorded post-halving for a new all-time high, but BTC may not reach a new all-time high in this cycle.
An FYI on $BTC
Current bull market cycle in $BTC will soon become the longest time post halving in history for a new ATH
or,
Could indicate that new ATH is not in the cards pic.twitter.com/jkeboVAGtp— Peter Brandt (@PeterLBrandt) August 21, 2024
However, CryptoQuant’s CEO, Ki Young Ju, remains optimistic about a BTC rally. According to the CEO, BTC’s bull rally in the last halving cycle began in Q4. Young Ju believes the whales will not let the fourth quarter (Q4) remain dull with a flat price performance.
In the last #Bitcoin halving cycle, the bull rally began in Q4. Whales won’t let Q4 be boring with a flat YoY performance. pic.twitter.com/LIWH53OpkD
— Ki Young Ju (@ki_young_ju) August 21, 2024
Meanwhile, analyst Mark Cullen was conservative in his BTC predictions. Cullen noted that Bitcoin still struggles to overcome the $59,500 resistance level. He predicts another dip for Bitcoin, moving it down to $57,500 and possibly dipping to $54,500.
However, historical data suggest that Bitcoin often performs strongly during Q4 of a bull market.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
