Bitcoin’s $60,000 Battle Continues, But Low Exchange Reserves Offer Hope For Bulls

Bitcoin seems to be struggling to break above $60,000. The world’s largest crypto asset by market capitalization has yet to recover from this week’s plunge. As a result, its weekly losses compared to last Friday’s rise are around 10%.

However, their stock market reserves that reached new lows during the year paint a bullish picture.

Declining Bitcoin Exchange Reserves

According to CryptoQuant’s observation, the decrease in bitcoin reserves suggests a reduction in selling pressure, which could pave the way for a bull market if demand continues to increase. A major factor contributing to this decline is the growing trend of self-storage, the report notes. This means more investors are choosing to store their BTC in cold wallets, ensuring greater control over their assets.

With fewer bitcoins available on exchanges, liquidity decreases, making immediate sales less feasible. This pattern reflects a market dominated by long-term investors, who are increasingly inclined to hold their assets in anticipation of future price appreciation.

As a result, the market becomes more resilient, with reduced susceptibility to sudden panic-induced selling.

Meanwhile, long-term holders have increased their supply by 262,000 BTC in the past 30 days. According to CryptoQuant data, this cohort of bitcoin holders now controls 14.82 million BTC, or 75% of the total supply. This growing dominance indicates strong conviction among investors, who are holding onto their assets despite negative market conditions.

A buying opportunity for Bitcoin investors

The current hash price, which reflects the profitability of miners, has fallen to its lowest levels, as revealed by the other analysis of the chain analytics platform. Historically, these periods have coincided with lows in the price of bitcoin, suggesting that the current low hash price could indicate that the crypto asset is also near the bottom.

This could present a strategic buying opportunity for investors, further strengthening the potential for a much-needed market rally.

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