- Bitcoin reserves on exchanges hit a new low since the beginning of 2021, implying that supply shock is brewing.
- Large wallet addresses holding 100 to 10,000 BTC have accumulated $2.9 billion worth of the asset over the past three days.
- For over a year, bitcoin spending by wallets holding the asset has dropped to a multi-year low.
Bitcoin holders are unshaken by the spike in volatility, though retail sentiment has flipped to permanently bearish. Analysts expect the altcoin to revisit the $50,000 level shortly.
Bitcoin rally is imminent as accumulation by holders continues
When Bitcoin hit its historical all-time high of $64,804 nearly five months ago, reserves on exchanges had hit a low. Following the recent drop to $44,000 on September 13, Bitcoin reserves on exchanges have hit a new low since the beginning of 2021.
Historically, a supply shock is followed by an adjustment in the asset’s price.
Dropping exchange reserves are likely to trigger a supply shock, and analysts expect Bitcoin’s price to hit $50,000 in the short term.
Pseudonymous cryptocurrency analyst and trader @TraderCoz expects BTC to hit $50,000 if the price holds above $47,300 despite a pullback.
$BTC
Broke out of our range that we were stuck in for a week or so.
I want to see 47.3k hold if we pull back at all. Ultimately though, I'm looking for a push up to 50k next.
Bulla. pic.twitter.com/LSpyT76VeQ
— TraderKoz (@TraderKoz) September 15, 2021