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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.
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.
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.
