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A significant development is unfolding in the cryptocurrency market as Bitcoin’s exchange reserves have plummeted to their lowest level in a decade. Initially sitting around 3.5 million BTC in 2020, the reserves have now dropped to 2.4 million BTC. This decline suggests that both institutional investors and long-term holders are entering a significant accumulation phase. According to experts, this trend indicates tightening supply and lays the groundwork for potential strong future price increases.
Short-Term Selling Pressure Doesn’t Hinder Long-Term Strength
Bitcoin’s price is currently hovering around $111,000, having been rejected multiple times from the $124,000 resistance level. Support has been established between the $107,000 and $111,000 range. On-chain data suggests this zone may transform into a “higher low” formation, historically a precursor to strong trend reversals.
Spot Taker CVD data from the past 90 days reveals a dominance of selling pressure. Yet, the price remaining stable within the support zone indicates that significant buyers are absorbing the selling pressure. Analysts note that this reflects “smart money” investors are accumulating at lower levels once again.
The rebound in the NVT Golden Cross indicator also signals a revival of market vitality. Recently increasing by 26.9%, reaching -0.66, this metric suggests growing transaction volumes relative to price on the Bitcoin 
$94,215 network. This is interpreted as a sign of both network health and recovering investor confidence.
Is the Countdown to a New Rally Beginning?
Experts claim the convergence of decreasing reserves, recovering network activity, and price stability has formed a structural bull signal. Historical data reveals that low reserves and accumulation periods often culminate in significant market rallies.
A similar scenario unfolded in mid-2020 when rapidly declining reserves preceded the 2021 bull market. Today, strengthened institutional demand, increased spot ETF trading volumes, and long-term investors’ confidence in the market suggest Bitcoin might be gearing up for another rally.
While Bitcoin currently seems to be in a phase of short-term uncertainty, on-chain indicators point to a robust recovery in the medium to long term. The historic low of reserves highlights the limited supply dynamic. With a reduction in selling pressure, surpassing the $124,000 resistance could trigger the start of a new wave of increases.
