TLDR
- Bitcoin exchange reserves fall to lowest point since 2019 with 45,000 BTC withdrawn worth $4.8 billion
- BTC trades at $110,544 following a 3.16% gain as major cryptocurrencies post similar increases
- Federal Reserve rate cut probability stands at 98.9% for October meeting boosting risk asset sentiment
- Key technical resistance identified at $111,000 with support holding at $107,000 level
- Long-term holders continue accumulating while moving coins off exchanges into private storage
Bitcoin exchange reserves have reached their lowest level in six years. Data shows investors removing large amounts of cryptocurrency from trading platforms.
More than 45,000 BTC has been withdrawn from exchanges since early October began. The total value equals approximately $4.8 billion in assets.
Bitcoin currently trades at $110,544 as of Monday morning. This marks a 3.16% increase over the previous 24-hour period.
The digital asset spent four consecutive days below $110,000 before this recovery. Other major cryptocurrencies also posted gains with Ether rising 3.6% to $4,036.
Federal Reserve Policy Drives Market Sentiment
Market conditions improved as traders anticipate monetary policy changes. The CME FedWatch Tool indicates a 98.9% chance of a 25 basis point rate cut in October.
Federal Reserve Chair Jerome Powell noted ongoing labor market weakness. This acknowledgment has reduced bond yields and created better conditions for digital assets.
Spot cryptocurrency ETFs experienced increased inflows recently. Investors viewed the previous price decline as an entry opportunity.
Rachael Lucas from BTC Markets explained that institutional money flow combined with macro factors drove the rebound. The improved liquidity environment benefits risk-oriented assets.
Exchange balance decreases typically signal reduced selling pressure. Fewer coins available on platforms means less immediate supply for traders.
Bitcoin’s circulating supply totals 19.93 million coins currently. Only 1.1 million coins remain before reaching the maximum supply of 21 million.
Accumulation Pattern Emerges
The Market Value to Realized Value ratio stands at -7.56% over 30 days. This metric suggests recent buyers hold small unrealized losses.
Historical data shows negative MVRV levels often precede price increases. Previous cycles demonstrated similar patterns before major upward movements.
Derivative market leverage sits at multi-year lows currently. Lower leverage reduces liquidation risks across the market.
Investors are transferring assets to cold storage instead of exchange wallets. This behavior contrasts with uncertain periods when traders seek immediate liquidity.
Technical Levels Define Near-Term Direction
Vincent Liu from Kronos Research highlighted $107,000 as critical support. Breaking below this level could trigger cascading liquidations.
Resistance exists between $111,700 and $115,500 according to market analysts. Clearing $111,000 may initiate a short squeeze scenario.
Chart patterns show a symmetrical triangle formation developing. The price tests resistance near $108,500 while maintaining support above recent lows.
The Relative Strength Index moved from 35 to 59 recently. This indicates strengthening momentum without overheated conditions.
A move above $110,850 opens potential toward $113,500 and $115,960. These represent previous resistance zones from earlier price action.
Losing support at $107,400 could push prices toward $104,550. Further weakness might test the $102,000 level.
Bitcoin’s market capitalization stands at $2.16 trillion currently. Continued buying above $111,000 could extend the current positive momentum and enable further price appreciation.
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