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After specialization Bitcoin (BTC) Price Dropmarket sentiment decreased A return to strong levels of fear, indicating that investors are becoming increasingly cautious and risk-averse. Despite this trend, on-chain data analytics provider CryptoQuant revealed a significant increase in Bitcoin buying momentumWhich led to Bitcoin balances on various exchanges falling to their lowest levels in six years.
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Bitcoin reserves on exchanges are seeing a sharp decline
with Constant market fluctuations And the recent decline in Bitcoin, on-chain data identified a significant shift in cryptocurrency market activity. Cryptoquant Data Bitcoin Corporation has revealed a significant drop in the total amount of Bitcoin held by various centralized exchanges (CEXs) in the market.
As of October 2, it is done Bitcoin balance on central exchangesAccording to Cowenglass, He sat down At 2.34 million, the lowest number in six years. This sharp decline contrasts with the 3.05 million Bitcoins that were held on exchanges in January of this year, highlighting a significant reduction in available supply in just a few months.
A low Bitcoin balance on centralized exchanges is usually an indicator of… Imminent price riseAs fewer BTC are available on these platforms it can create upward pressure on its price due to limited supply. the Decrease in Bitcoin reserves It could also indicate a shift in investor sentiment from selling to accumulating.
the next Bitcoin price drop To about $60,000, various exchanges witnessed mass withdrawals from investors. On one of her QuickTake blogs, CryptoQuant described This large-scale withdrawal is considered “the largest outflow of Bitcoin from exchanges since November 2022.”
This development also comes on the heels of the latter He increases In the accumulation of Bitcoin by whales and the high demand for it Bitcoin Exchange Traded Funds (ETFs). Additional information from CryptoQuant reveals Institutional investors went from net selling 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 21.
#Bitcoin Demand from US spot ETFs is on the rise.
They went from net selling 5k $ Bitcoin On September 2 to buy 7 thousand bitcoins at the end of September – the highest level since July 21.
In the first quarter of 2024, spot ETFs bought nearly 9,000 #Bitcoin daily, raising prices to new highs.
If this trend continues, prices may rise… pic.twitter.com/6EQ9JXUzdw
— CryptoQuant.com (@cryptoquant_com) October 4, 2024
Furthermore, in the first quarter of 2024, spot ETFs were reportedly buying nearly 9,000 Bitcoin per day, boosting prices to new levels. CryptoQuant also revealed that if this increase in demand continues,… Bitcoin price may rise further.
The analyst remains bullish on BTC, predicting a $100,000 increase
A popular cryptocurrency analyst, known as “The Bitcoin Therapist” on X (formerly Twitter). open Huge Bull Flag in Bitcoin Price Chart. The analyst revealed that this bull flag has formed over the past seven months, indicating the possibility of higher prices in the future.
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Sharing a video representation of his Bitcoin chart analysis, the analyst revealed that if BTC price can break through the $66,000 resistance level, it could… It jumped to all-time highs About $80,000 to $90,000. He also expressed strong bullish sentiment regarding Bitcoin future priceHe expected prices to rise to $100,000.
Featured image from CNN, chart from TradingView