BTC stocks on the stock exchanges are falling to 2018 lows

The continued spike in Bitcoin (BTC) prices above $ 64,000 coincided with a significant drop in its reserves on all exchanges.

According to data from CryptoQuant, a South Korea-based blockchain analytics service, the amount of Bitcoin held in exchange wallets fell to just 2.379 million BTC earlier this week, its lowest level in more than three years. Currently the reserves are around 2.38 million BTC.

Bitcoin reserves on all exchanges. Source: CryptoQuant

CryptoQuant noted that the decline in Bitcoin reserves demonstrated the availability of fewer BTC tokens “for selling, buying altcoins and trading on margins”. In addition, this also reflected the intent of the traders to hold the cryptocurrency.

Demand for Bitcoin is growing between whales and fish

BTC stocks on the stock exchanges are falling to 2018 lows
BTC stocks on the stock exchanges are falling to 2018 lows

On the flip side, the demand for cryptocurrencies from private and institutional traders appears to have increased, with the number of wallets exceeding $ 100 and $ 10 million in BTC hitting record numbers of 16.67 million and 10,510, respectively .

Bitcoin addresses with balances greater than $ 100 million and $ 10 million. Source: Messari, Coin Metrics

On-chain analyst Willy Woo published a report in August 2021 discussing Bitcoin’s “supply shock” against growing demand, and concluded that the value of the cryptocurrency per token should be at least $ 55,000 .

The “conservative” target stayed below the price forecast by the pseudonymous analyst PlanB of $ 135,000 for the end of 2021, based on its stock-to-flow model.

In the meantime, PlanB’s Bitcoin price prediction for November 2021 is around $ 98,000, down from $ 70,000, the most preferred target for options maturing on November 26th, as shown in the table below.

BTC OI options by exercise price (Expires November 26, 2021). Source: Bybt

Macroeconomic fundamentals of BTC prices

Bitcoin’s bullish fundamentals in the chain are set to get even stronger when it launches on Wall Street.

On Tuesday, ProShares was the first publicly traded company to launch an exchange-traded fund (ETF) based on Bitcoin futures on the New York Stock Exchange. As a milestone in Bitcoin investment opportunities, the listing opened up a new avenue for institutional investors to get exposure to BTC.

For example, Tom Lee, co-founder of Fundstrat Global Advisors, said that expected Bitcoin ETFs to attract at least $ 50 billion over the next 12 months, reaffirming his team’s $ 100,000 year-end price target for BTC.

Tech-wise, Bitcoin appeared to be heading for its record of nearly $ 65,000 and is now acting as a resistance mark.

BTC / USD daily price chart with Fibonacci retracement levels. Source: TradingView

Secondly, Bitcoin’s Relative Strength Index (RSI), a momentum indicator that analyzes an asset’s overbought / oversold signals, reported that the price of the cryptocurrency is excessively high on the daily candlestick chart, indicating a setback on the table .

Should there be a correction, the next Bitcoin support target could be near the $ 57,500 level, which serves as the 78.6% Fibonacci level on the Fibonacci retracement chart, which is between the high of $ 65,000 and the minimum of 30,000 USD is drawn.

The level also coincides with Bitcoin’s 20-day exponential moving average (the green wave in the graph above). This level has previously acted as a strong support during Bitcoin’s uptrend.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you must conduct your own investigation when making a decision.

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