With the BTC exchange reserves falling to 2018 lows, the price of Bitcoin is expected to exceed $65,000

Bitcoin (Bitcoin) While prices continued to rise above US$64,000, reserves on all exchanges have fallen sharply.

According to data provided by South Korean blockchain analysis service CryptoQuant, the number of bitcoins held in exchange wallets dropped to 2.379 million bitcoins earlier this week, the lowest level in more than three years. Currently, the reserves are approximately 2.38 million BTC.

All the foreign exchange reserves of Bitcoin. Source: CryptoQuant

CryptoQuant famous The decline in Bitcoin reserves indicates a decrease in the number of BTC tokens “used for sales, altcoin purchases, and margin trading”. In addition, this also reflects the trader’s intentions”HODL‘Cryptocurrency.

Whales and fish’s demand for Bitcoin grows

On the other hand, the demand for cryptocurrencies by retail and institutional traders seems to have been increasing. The number of wallets holding BTC worth more than 100 USD and 10 million USD reached a record high of 16.67 million and 10,510, respectively.

Bitcoin addresses with a balance of more than 100 USD and 10 million USD. Source: Messari, CoinMetrics

On-chain analyst Willy Woo Published a report In August 2021, the “supply shock” of Bitcoin’s growing demand was discussed, and the conclusion was that the value of each token of the cryptocurrency Should be at least 55,000 USD.

By the end of 2021, the “conservative” target is still below the $135,000 price forecast of the pseudonymous analyst PlanB. Inventory-to-flow model.

At the same time, PlanB’s Bitcoin price prediction The price in November 2021 is approximately US$98,000, which is higher than US$70,000. This is the preferred execution target for options expiring on the 26th of the same month, as shown in the figure below.

BTC option OI calculated at the strike price (expires on November 26, 2021). Source: ByBt.com

BTC price macro fundamentals

Bitcoin’s bullish on-chain fundamentals may be further strengthened by Wall Street adoption.

On Tuesday, ProShares became the first ETP company Launch of an exchange-traded fund based on Bitcoin futures (ETF) is listed on the New York Stock Exchange. As a milestone in Bitcoin investment opportunities, this listing has opened up a new path for institutional investors to access BTC.

For example, Tom Lee, co-founder of Fundstrat Global Advisors Said He expects Bitcoin ETFs to attract at least US$50 billion in the next 12 months, reiterating his team’s year-end price target of US$100,000 for BTC.

Technically, Bitcoin seems to be heading towards an all-time high of close to $65,000 and is now acting as a resistance level.

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

On the other hand, Bitcoin’s Relative Strength Index (RSI), a momentum indicator that analyzes overbought/oversold signals of an asset, Report The cryptocurrency price on the daily candlestick chart is too high, indicating a possible pullback.

related: As the BTC/Euro currency pair hit a record high, Bitcoin hit the highest daily closing price in history

If a correction occurs, Bitcoin’s next support target may be close to $57,500, which is the 78.6% Fibonacci level of the Fibonacci retracement chart, located 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). This level earlier played a strong supporting role in Bitcoin’s upward trend.

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