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Bitcoin's Bullish Outlook: Supply Crunch and Institutional Demand Drive Price Targets to $110,000 and Beyond

Supply Scarcity Fuels Bitcoin's Bullish Momentum

 

Bitcoin exchange inflows have fallen to multi-year lows, representing a steep drop in sell-side pressure and accumulation building. Individual wallet addresses exchange-only sending frequency has fallen to an all-time low since 2017, and the exchange whale ratio has fallen, indicating decreasing whale selling and rising retail involvement. Furthermore, the amount of Bitcoin in exchanges is at a seven-year low, and large-scale outflows were induced by institutional purchases. Publicly listed entities like MicroStrategy, as well as Hong Kong and Japanese institutions, have recorded significant increases in their Bitcoin holdings.

 

Those conditions suggest that there could be a scarcity of supply, and that is in favor of a bullish outlook for Bitcoin. The Bitcoin price has gone above $95,000, and market analysts are looking for $100,000 as the tight supply is one of the reasons for that. Strong institutional demand is reflected in huge inflows into spot Bitcoin ETFs, and earlier, miner production costs reaching levels close to current prices have indicated bull runs. Small weekend exchange inflows indicate there is some lingering volatility, but overall, the trend is indicating weakening selling pressure and growing accumulation

Technical Analysis: Key Levels to Watch for BTC/USD

BTC/USD currently trades above  both short-term (34-EMA and 55-EMA) and  below long-term (200-EMA) moving averages on the daily chart. Minor support is around $92500; breaking below this would drag the pair down to $89000/$85900/$83000. Immediate resistance is around $100000 any breach above confirms intraday bullishness, a jump to $110000. A secondary barrier at $110,000 indicates that closing above this level could lead to targets at $111,292, $115,000, or even $135,000.

Investment Strategy: Opportunities for Traders

Indicators (4-hour chart).

CCI(500- Bullish

Directional movement index - Neutral

 

It is good to buy on dips around $95000, with a stop-loss set at $90000 for a TP of $110000.

 

 

 

 

 

 

 

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