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Great follow up Bitcoin (BTC) price dropmarket sentiment it has fallen we have returned to strong levels of fear, indicating that investors are becoming more cautious and risk averse. Despite this trend, on-chain analytics provider CryptoQuant has revealed a significant increase BTC buying momentumresulting in Bitcoin balances on various exchanges falling to a six-year low.
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Bitcoin Reserve On Exchanges Sees Sharp Plunge
With continued market volatility and the recent decline of Bitcoin, on-chain data has identified a significant change in cryptocurrency market activity. CryptoQuant’s data revealed a significant drop in the total amount of Bitcoin held by Centralized Exchanges (CEXs) in the market.
As of October 2, the Bitcoin balance for central exchangeaccording to Coinglass, he sat down at 2.34 million, the lowest figure in six years. This sharp decline is in contrast to the 3.05 million Bitcoin held in exchange in January of this year, highlighting a significant drop in available supply in just a few months.
Often a low Bitcoin balance on an average exchange can be an indication of upcoming price appreciationas fewer BTC available on these platforms can create upward pressure on its price due to limited supply. I the decline of Bitcoin reserves it may also indicate a shift in investor sentiment from selling to accumulating.
To follow Bitcoin price drop to about $60,000, various exchanges experienced mass withdrawals from investors. In one of its QuickTake blogs, CryptoQuant explained this massive withdrawal is “Bitcoin’s biggest exit from trading since November 2022.”
This development is also following the latest increase in Bitcoin the accumulation of whales and the increase in demand for Spot Bitcoin Exchange Traded Funds (ETFs). More information from CryptoQuant revealed that institutional investors went from selling a net 5,000 BTC on September 2 to buying 7,000 BTC by the end of the month. This represents the highest daily purchase of Spot Bitcoin ETFs since July 21st.
#Bitcoin demand from US spot ETFs is increasing.
They are off the net selling 5K $BTC on Sept 2 to buy 7K BTC by the end of September—highest since July 21.
In Q1 2024, ETFs bought about 9K #BTC every day, it drives the prices higher.
If this trend continues, prices may rise… pic.twitter.com/6EQ9JXUzdw
– CryptoQuant.com (@cryptoquant_com) October 4, 2024
Furthermore, in the first half of 2024, Spot ETFs were reportedly buying around 9,000 BTC daily, pushing prices to new levels. CryptoQuant also reveals that if this increase in demand continues, i The price of Bitcoin may be happy further.
Analyst Remains Bullish On BTC, Predicts $100,000 Surge
Popular crypto analyst, known as ‘Bitcoin Therapist’ on X (formerly Twitter). not covered a big bullish flag on the Bitcoin price chart. The analyst pointed out that this bull flag has been formed in the past seven months, which indicates that the price may increase in the future.
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Sharing a video representation of his Bitcoin chart analysis, the analyst revealed that if the price of BTC breaks above the $66,000 resistance level, it can. skyrocketing to a new all-time high about $80,000 to $90,000. He also expressed strong bullish sentiment on The future price of Bitcoinpredicts an even higher price increase to $100,000.
Featured image from CNN, chart from TradingView