Bitcoin supply on exchanges is constantly trending – liquidity-driven time?
Bitcoin trades below $100,000 after reaching a local high of $97,938, indicating a bullish momentum. After weeks of consolidation, last week’s surge tilted in the market, and the Bulls are now firmly in control. Analysts are increasingly optimistic, suggesting that supply dynamics are a potential catalyst for further upside potential.
Top analyst Daan shared insights that Bitcoin exchange reserves continue to decline rapidly. This trend underscores a significant shift in investor behavior. As coins are exchanged, sales pressures are often reduced, usually the predecessor of extended gatherings.
As BTC now remains at previous resistance and moves forward towards historical milestone pressure, supply side squeezes can be higher for sharp legs. The $100,000 level is still a psychological and technical barrier, but if the volume is large, it could trigger wider gatherings throughout the market. With liquidity tightening and long-term holders accumulating, everyone’s eyes are focused on whether Bitcoin can maintain this momentum and enter price discovery again.
Bitcoin chain data signal strength
Bitcoin is currently consolidating above key liquidity levels, with decisive earnings of more than $90,000 and trading volumes below $100,000 after the multi-week surge began. The Bulls are in short-term control, but now they are facing the challenge of maintaining momentum. Staying beyond this range is critical to confirming the new leg of the rally and preventing deeper callbacks. Despite the great gains, the market remains fragile, which is the impact of global uncertainty and ongoing trade tensions, especially between the United States.
After months of historical climax sales pressure, Bitcoin has shown new strength and is trying to build a broader bullish structure. Recent price action signals indicate investors are beginning to move to risky assets. However, macroeconomic instability and potential recession risks remain looming, suggesting that price action may remain volatile.
Daan shares on-chain data that supports bullish papers. Bitcoin exchange reserves continue to decline rapidly, a trend accelerated since the last U.S. election and the recent price merger. This decline in exchange balances has historically been supply crunch, which can exacerbate positive rally. If central banks reintroduce large-scale liquidity injections, Bitcoin could respond with a strong breakthrough. For now, the bull must hold the line.
BTC price action details: Key levels to watch
After a powerful multi-week rally, Bitcoin (BTC) is currently trading at about $96,600, and the rally begins to approach $84,000. The 4-hour chart shows a clear bullish structure, with high and higher lows forming since mid-April. Price action always exceeds the 200-period simple moving average (SMA) and the 200-stage exponential moving average (EMA) at $86,925 and $89,428, respectively. This shows strong support and sustained momentum for short-term trends.
However, BTC has now entered a tight integration range, away from the psychological $100,000 resistance level, with short-term resistance forming close to $97,900. Quantity shows a recent drop in candles, suggesting potential buyers exhausted or pauses before the next long line. If the Bulls can confirm $98,000 of $98,000 by quantity, it is very likely to use the $103,600 area as the next major resistance, a cleaning scan above $100,000.
On the downside, any decline below $95,000 could invalidate the short-term bullish momentum and trigger a back-track range of $90,000 to $91,000, a high liquidity and previous merger area. Overall, BTC is still technically powerful, but the next decisive move will come from how to deal with the upcoming $97,000-$100,000 range.
Featured images from DALL-E, charts from TradingView
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