Bitcoin supply on exchanges has hit a new low for the first time in six years, providing a bullish outlook for BTC. This comes as the flagship crypto continues to hit new all-time highs (ATHs), with the $130,000 target now in sight.
Bitcoin Supply On Exchanges Hit Six-Year Low
Glassnode data shows that the Bitcoin supply on exchanges has fallen to a six-year low of around 2.8 million BTC. The last time the BTC balance on exchanges was this low was in June 2019, when the flagship crypto was trading at around $8,745. This development confirms that investors are accumulating Bitcoin at an unprecedented pace.
CryptoQuant data also confirms this development, with the Bitcoin exchange reserve currently at 2.5 million BTC, even lower than what is shown on Glassnode’s dashboard. This is bullish for the BTC price, as such massive demand usually precedes a major supply squeeze. Notably, this comes amid an increased demand from institutional investors, with the BTC ETFs recording $3.2 billion in weekly inflows last week, their second-largest since their launch last year.
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This comes as institutional investors move to Bitcoin as a safe-haven asset as part of the debasement trade during this period of uncertainty caused by the U.S. government shutdown. Thanks to the increased demand, BTC is already up 9% to start this month and rallied to multiple all-time highs amid the ‘Uptober’ rally.
The Bitcoin price topped $126,000 for the first time ever yesterday and now looks on course to test the $130,000 milestone. With the massive demand from the BTC ETFs, there is the belief that the flagship crypto could hit this milestone this month. SoSo Value data shows that these funds took in $1.19 billion in net inflows yesterday, their highest daily inflow this year.
BTC Could Break Above $130,000
Crypto analyst Titan of Crypto has suggested that Bitcoin is on track to make a new all-time high (ATH) above $130,000. He noted that BTC is testing the same trendline that rejected it a few weeks ago. However, this time around, the weekly MACD is crossing bullish, which could spark the rally above $130,000. His accompanying chart showed that a rally to as high as $140,000 was a possibility if the flagship crypto flips $130,000 into support.
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Crypto analyst Mikybull Crypto also noted that Bitcoin is currently facing resistance around its current price level, making it a key level to watch. He added that a meaningful breakout above this level will send BTC to between $136,000 and $150,000.
At the time of writing, the Bitcoin price is trading at around $124,500, up in the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
