A significant shift is unfolding in the cryptocurrency market as Bitcoin’s reserves have dropped to their lowest level in ten years. From around 3.5 million BTC in 2020, holdings have now declined to 2.4 million BTC, signaling that both institutional investors and long-term holders are entering a phase of substantial accumulation. Experts suggest this tightening supply could set the stage for potential price surges in the future.
Currently trading around $111,000, Bitcoin has repeatedly faced resistance at $124,000, while support has formed between $107,000 and $111,000. On-chain data indicates this support zone could develop into a “higher low” pattern, historically a precursor to strong trend reversals. Spot Taker CVD data over the past 90 days shows dominant selling pressure; however, the price stability in this range suggests significant buyers are absorbing the selling, indicating that “smart money” is accumulating at lower levels.
The NVT Golden Cross indicator has also shown renewed market strength, rising 26.9% to -0.66, reflecting growing transaction volumes relative to Bitcoin’s network price of $113,070. This is seen as a sign of network health and investor confidence returning.
Analysts highlight that the combination of decreasing reserves, increased network activity, and price stability forms a structural bullish signal. Historical patterns show that low reserves and accumulation periods often lead to significant market rallies. A similar scenario played out in mid-2020, when the rapid decline in reserves preceded the 2021 bull market. With strong institutional demand, growing spot ETF volumes, and long-term investor confidence, Bitcoin appears positioned for a potential new rally. While short-term uncertainty persists, on-chain indicators point to a robust recovery in the medium to long term. The historic low in reserves underscores limited supply, and breaking through the $124,000 resistance could trigger the next wave of price gains.