As the price of Bitcoin continues to demonstrate significant upside movement over the past few weeks, there has been a notable shift in sentiment among holders and investors, leading to a substantial decrease in the balance of BTC held in crypto exchanges.
Bitcoin Holders Adopting A Different Approach
A recent report shows that Bitcoin’s crypto exchange balance has seen a sharp decline to its lowest level in years, coinciding with growing price momentum in the general cryptocurrency market. IC News, an informative platform identified and reported the development on the X (formerly Twitter) platform late Sunday.
The decreasing exchange balance has triggered speculations of a possible supply squeeze, causing optimistic sentiment among investors. It implies that investors are currently choosing to hold their coins in private wallets rather than crypto exchanges, reflecting confidence in BTC’s potential for long-term growth.
According to the platform, Bitcoin’s overall exchange balance has fallen below 2.8 million BTC. This marks its lowest level since 2018, reflecting a strategic move by retail investors.
IC News highlighted that this outflow of 55,000 BTC is consistent with increased on-chain activity, indicating substantial accumulation. Furthermore, the movement comes in tandem with heightened demand for self-custody due to waning confidence towards centralized crypto platforms.
Specifically, this pattern, together with rising demand, has sparked speculation that fewer BTC available on crypto platforms may trigger the digital asset’s price. The trend is mostly considered within the sector as a crucial factor in determining how BTC develops over the coming months.
Over the past week, Bitcoin’s exchange reserve decreased by about 1.53% and dropped by 0.61% in 24 hours. A decline in the exchange reserve usually suggests that there is less Bitcoin available on exchanges, which indicates a high inclination toward long-term storage.
Thus far, market players are actively monitoring this key trend as they anticipate its influence on the direction of crypto asset’s price since scarcity typically encourages higher prices.
A $200,000 Price Likely For BTC?
With several positive developments cited around Bitcoin and its price, the crypto asset may be poised for a significant rally in the coming months. Market experts like Titan of Crypto have predicted that BTC’s price could surge as high as $200,000 in the ongoing bull cycle, triggering strong optimism and confidence in its future performances.
Titan of Crypto’s forecast is fueled by a breakout from a key chart formation, particularly the Ascending Channel pattern. After closing November above the center line of the ascending channel formation, the analyst believes a huge rally might follow shortly, potentially reaching the $200,000 mark this cycle. “It might sound ambitious and I’m not betting on it, but $200,000 could be in play this cycle,” he stated.
Featured image from Unsplash, chart from Tradingview.com
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