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Following an important price drop in bitcoin (btc)market sentiment x.com/misterrcrypto/status/1842263666873307234?s=46″ target=”_blank” rel=”nofollow”>abandonment again to strong fear levels, indicating that investors are becoming increasingly cautious and risk averse. Despite this trend, on-chain data analytics provider CryptoQuant has revealed a significant increase in btc buying impulsecausing bitcoin balances on several exchanges to fall to six-year lows.
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bitcoin reserves on stock exchanges experience a sharp drop
With current market volatility and the recent bitcoin crash, on-chain data has identified a significant shift in cryptocurrency market activity. CryptoQuant btc/chart/exchange-flows/exchange-reserve?exchange=all_exchange&window=DAY&sma=0_7&ema=0&priceScale=log&metricScale=linear&chartStyle=line” target=”_blank” rel=”nofollow”>data has revealed a substantial decline in the total amount of bitcoin held by various Centralized Exchanges (CEX) in the market.
Starting October 2, the bitcoin-exchange-reserve-sees-sharp-decline/” target=”_blank” rel=”nofollow”>bitcoin balance from centralized exchangesaccording to Coinglass, sat down with 2.34 million, the lowest figure in six years. This sharp drop contrasts with the 3.05 million bitcoin held on exchanges in January of this year, highlighting a significant reduction in available supply in just a few months.
Typically, a low bitcoin balance on centralized exchanges could be an indication of a imminent price appreciationas less btc available on these platforms can create upward pressure on its price due to limited supply. He reduction of bitcoin reserves It could also be signaling a shift in investor sentiment from selling to accumulating.
Following The fall of the price of bitcoin up to around $60,000, several exchanges experienced massive investor withdrawals. In one of his QuickTake blogs, CryptoQuant bitcoin-from-exchanges-since-November-2022″ target=”_blank” rel=”nofollow”>described This large-scale withdrawal is “the largest outflow of bitcoin from exchanges since November 2022.”
This evolution also follows the recent x.com/rovercrc/status/1841831317862023292?s=46″ target=”_blank” rel=”nofollow”>increase in the accumulation of bitcoin by whales and an increase in demand for Spot bitcoin Exchange Traded Funds (ETFs). CryptoQuant Additional Information x.com/cryptoquant_com/status/1842185633692840031?s=46″ target=”_blank” rel=”nofollow”>reveals that institutional investors went from net selling 5,000 btc on September 2 to buying 7,000 btc at the end of the month. This represents the highest daily purchase of spot bitcoin ETFs since July 21.
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twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin Demand for US spot ETFs is increasing.
They went from selling net 5K twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc on September 2 until purchasing 7K btc at the end of September, the highest level since July 21.
In the first quarter of 2024, spot ETFs bought almost 9,000 twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#btc daily, raising prices to new highs.
If this trend continues, prices may rise… pic.twitter.com/6EQ9JXUzdw
– CryptoQuant.com (@cryptoquant_com) twitter.com/cryptoquant_com/status/1842185633692840031?ref_src=twsrc%5Etfw” rel=”nofollow”>October 4, 2024
Furthermore, in the first quarter of 2024, spot ETFs were reported to have purchased almost 9,000 btc daily, driving prices to new levels. CryptoQuant also revealed that if this increase in demand continues, the bitcoin price may appreciate further.
Analyst Remains Bullish on btc, Predicts Rise to $100,000
A popular crypto analyst, known as 'The bitcoin Therapist' on x (formerly twitter) has x.com/thebtctherapist/status/1842006028512014463?s=46″ target=”_blank” rel=”nofollow”>uncovered a huge bullish flag on the bitcoin price chart. The analyst revealed that this bullish flag had formed over the past seven months, indicating potential for price increases in the future.
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Sharing a video representation of his bitcoin chart analysis, the analyst revealed that if btc price can surpass the $66,000 resistance level, it could shoot to new all-time highs around $80,000 to $90,000. He also expressed strong bullish sentiment on The future price of bitcoinpredicting an even larger price increase to $100,000.
Featured image from CNN, chart from TradingView
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