The continuing rise in bitcoin (BTC) prices of more than $ 64,000 has coincided with significant reductions in reserves across all exchanges.
According to data provided by CryptoQuant, a South Korean blockchain analytics service, the number of bitcoins held in exchange wallets fell to 2.379 million BTC earlier this week, the lowest in more than three years. The reserves are currently around 2.38 million BTC.
Bitcoin is stored on all exchanges. Source: CryptoQuant
CryptoQuant notes that the decline in bitcoin reserves shows that fewer BTC tokens are available for “selling, buying altcoins, and trading on margin.” Moreover, it also reflects the intention of traders to “collect” the cryptocurrency.
Whale and Fish Demand for Bitcoin is Rising
On the other hand, the demand for cryptocurrency appears to be growing among individual and institutional traders, with the number of wallets holding over $ 100 and $ 10 million in BTC hitting all-time highs of $ 16.67 and $ 10,510, respectively. …
Bitcoin addresses with balances over $ 100 and $ 10 million. Source: Messari, Coin Metrics
Network analyst Willie Wu published a report in August 2021 discussing the “supply shock” of Bitcoin amid growing demand, and concluded that the value of each cryptocurrency should be at least $ 55,000.
The “conservative” target remained below the estimated $ 135,000 per analyst under the pseudonym PlanB by the end of 2021 based on the inventory model.
Meanwhile, PlanB estimates the bitcoin price in November 2021 at around $ 98,000, above $ 70,000, which is the most favorable target for options expiring on November 26, as shown in the chart below.
BTC OI Options at Draw Price (Expired Nov 26, 2021). Source: Bybt
The Basics of the Total Price of Bitcoin
Bitcoin’s bullish fundamentals in relation to the network are likely to strengthen further after the adoption of Wall Street.
On Tuesday, ProShares became the first exchange-traded grocery company to launch an Exchange Traded Fund (ETF) based on bitcoin futures (ETF) contracts on the New York Stock Exchange. The listing opened up new opportunities for institutional investors to learn about BTC, which was a major milestone for Bitcoin’s investment opportunity.
For example, Tom Lee, co-founder of Fundstrat Global Advisors, said he expects the Bitcoin ETF to raise at least $ 50 billion over the next 12 months, confirming the team’s year-end target of $ 100,000 per BTC.
Technically, it looks like Bitcoin is heading towards an all-time high of around $ 65,000, which is now a resistance level.
BTC / USD price daily chart showing Fibonacci retracement levels. Source: TradingView
On the flip side, the Bitcoin Relative Strength Index (RSI), a momentum indicator that analyzes the overbought / oversold signals of an asset, reported that the price of the cryptocurrency is too high on the daily candlestick chart, indicating a pullback in the table.
Related: Bitcoin Sees Its Highest Daily Proximity As BTC / Euro Pair Reaches All-Time Highs
In the event of a correction, the next support target for Bitcoin could be close to $ 57,500, which is the 78.6% Fibonacci level on the Fibonacci retracement chart plotted between the $ 65,000 swing high and the $ 30,000 swing low.
This level also coincides with Bitcoin’s 20-day exponential moving average (green wave in the chart above). The previously mentioned level was strong support during the Bitcoin bullish trend.