Bitcoin reserves hit a record low as the price heads towards a breakout above 90,000 USD

The Bitcoin exchange reserves have fallen sharply from around 3.2 million BTC at the beginning of 2023 to 2.4 million BTC. This is the lowest level in several years and indicates a significant change in investor behavior. The chart from Crypto Banter demonstrates that withdrawing Bitcoin from exchanges indicates an increasing trend of long-term holding behavior. Historical data shows that this trend often indicates an upcoming market price surge in previous periods.

The value of Bitcoin has surged as exchanges witnessed a decrease in bitcoin reserves. Bitcoin has experienced a significant price increase from the beginning of 2023 at $16,000 to the current market price of $84,600. Such a sudden fall in the amount of Bitcoin held on cryptocurrency exchanges indicates lower selling pressure. The available supply on exchanges has a positive correlation with price increases as rising demand pushes prices higher.

Investor behavior reflects confidence despite short-term losses. The latest report from Glassnode indicates that short-term holders are facing significant unrealized losses. The "Unrealized Loss per Percent Drop" metric has surged to levels commonly seen before market downturns. However, the lack of capitulation among long-term holders adds an important dimension to the current market sentiment. Traditionally, it is only when long-term holders recognize significant losses that the market enters a confirmed downtrend. This difference indicates the confidence that is occurring among experienced investors. The general market pessimism does not appear despite pressure from new buyers. Technical indicators show a trend change in direction. The MACD signal turns bullish after the MACD line crosses above the signal line on various investment charts.

Bitcoin has recovered back to the level of 74,400 dollars after falling but must surpass the level of 85,726 dollars before continuing the upward trend. A decisive daily close above the price level of 88,804 dollars will prove a strong breakout towards the next targets, extending from 97,693 dollars to potential areas of 112,078 dollars and 126,462 dollars. The Fibonacci indicators show several technical resistance levels predicting the price could move to $112,078 and $126,462 as secondary and tertiary points. Analysts predict the likelihood of a consolidation if Bitcoin cannot reclaim the $85,700 level in the near future. The support zone likely for such a move is in the range of $81,000 to $78,000. Conclusion While short-term holders face losses, the resilience of long-term investors and decreasing foreign reserves is forming a bullish setup. Market momentum continues to rise, with important resistance levels in sight as Bitcoin approaches a potential breakout phase.