Bitcoin Supply On Exchanges Keeps Trending Down – Time For A Liquidity-Driven Surge?
By: bitcoin ethereum news|2025/05/03 18:45:01
0
Share
Bitcoin is trading just below the $100,000 mark after reaching a local high of $97,938, signaling growing bullish momentum. After weeks of consolidation, last week’s surge has flipped sentiment across the market, with bulls now firmly in control. Analysts are increasingly optimistic, pointing to the tightening supply dynamics as a potential catalyst for further upside. Top analyst Daan shared insights showing that Bitcoin exchange reserves continue to decline rapidly. This trend highlights a significant shift in investor behavior. As coins are pulled off exchanges, selling pressure typically decreases, often a precursor to extended rallies. With BTC now holding above previous resistance and pressing toward a historic milestone, the supply-side squeeze could set the stage for a sharp leg higher. The $100K level remains a psychological and technical barrier, but if broken with strong volume, it may trigger a broader rally across the market. As liquidity tightens and long-term holders accumulate, all eyes are on whether Bitcoin can sustain this momentum and again enter price discovery. Bitcoin On-Chain Data Signals Strength Bitcoin is currently consolidating above critical liquidity levels, trading just below the $100,000 mark after a multi-week surge that began with a decisive break above $90,000. The bulls are in short-term control, but they now face the challenge of sustaining momentum. Holding above this range is essential to confirm a new leg of the rally and prevent a deeper pullback. Despite strong gains, the market remains fragile, shaped by global uncertainty and persistent trade tensions, particularly between the US and China. After months of heavy selling pressure from all-time highs, Bitcoin is showing renewed strength and attempting to establish a broader bullish structure. The recent price action signals that investors are beginning to rotate back into risk assets. Yet, macroeconomic instability and potential recession risks still loom large, suggesting that price action could remain volatile. Daan shared on-chain data that supports the bullish thesis. Bitcoin exchange reserves continue to decline rapidly, a trend that has accelerated since the last US election and during the recent price consolidation. This drop in exchange balances historically precedes supply crunches, which can fuel aggressive rallies. Should central banks reintroduce large-scale liquidity injections, Bitcoin would likely respond with a powerful breakout. For now, bulls must hold the line. BTC Price Action Details: Key Levels To Watch Bitcoin (BTC) is currently trading around $96,600 after a strong multi-week rally that began near the $84,000 level. The 4-hour chart shows a clear bullish structure, with higher highs and higher lows forming since mid-April. Price action remains firmly above both the 200-period Simple Moving Average (SMA) and the 200-period Exponential Moving Average (EMA), which sit at $86,925 and $89,428, respectively. This suggests strong support and continued momentum on the short-term trend. However, BTC has now entered a tight consolidation range just below the psychological $100,000 resistance level, with short-term resistance forming near $97,900. Volume is showing some decline on recent candles, hinting at potential buyer exhaustion or a pause before the next leg. If bulls can break through $98,000 with volume confirmation, a clean sweep above $100K is highly likely, targeting the $103,600 zone as the next major resistance. On the downside, any drop below $95,000 could invalidate short-term bullish momentum and trigger a retracement back toward the $90,000-$91,000 range—an area of high liquidity and previous consolidation. Overall, BTC remains technically strong, but the next decisive move will come from how it handles the $97K–$100K range in the coming sessions. Featured image from Dall-E, chart from TradingView Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers. Source: https://bitcoinist.com/bitcoin-supply-on-exchanges-keeps-trending-down-time-for-a-liquidity-driven-surge/
You may also like
How to choose between buying discounted ETH, Bitmine, and SharpLink?
The answer may not lie in whose story is told better, but in specific dimensions such as cost of holding, financing ability, liquidity, and whether the narrative can be realized.
Semiconductor stocks plummet, yet Anthropic wants to create a 2nm chip
Abandoning TSMC and teaming up with Samsung. Anthropic launches a self-developed 2nm chip program, challenging Nvidia and starting a battle to break through computing power costs.
A South Korean company that learned the strategy of hoarding coins, from a bull market to delisting?
When the overall momentum of the Korean stock market is strong, this batch of cryptocurrency concept stocks, branded as the "Korean version of Strategy," finds itself at a crossroads of life and death.
Where is Zhao Changpeng's billion-dollar investment going? YZi Labs' investment landscape fully revealed
Zhao Changpeng's billion-dollar new "family office" YZi Labs investment landscape revealed: 70% of the funds are committed to the crypto ecosystem, while 30% are cross-industry bets on AI and biotechnology, launching a new capital experiment in the post-Binance era.
Ethereum Foundation Report: A Basic Guide to Ethereum for Governments and Financial Institutions
The Ethereum Foundation has released this non-technical introductory report aimed at government officials, central banks, regulators, and corporate decision-makers, explaining how Ethereum works, how it is governed, how it differs from other blockchains, and how institutions and governments are alre...
A pre-announced harvesting case: After the cryptocurrency price dropped by 99%, the public chain Saga exited to transform into AI
True failure often isn't a single price drop, but rather a pricing mechanism that repeatedly rewards those who tell stories while repeatedly punishing those who believe in the stories.
When American giants collectively "defect" from Chinese AI models
Coinbase CEO publicly stated: the company has fully switched its AI to a Chinese model, cutting expenses in half while usage has doubled. Snowflake and Lindy are also doing the same thing—an unnoticed "AI model migration wave" is happening.
BIS Report Compliance Observation: The Real Risks of Stablecoins, Not Just "Depegging"
The issue with stablecoins is not just whether their price will decouple, but whether they can be integrated into a recognizable, monitorable, accountable, and regulated financial system.
Portugal 2-1 Croatia: Ronaldo's 20-Year Knockout-Stage Drought Ends With a Debt Finally Collected
Portugal beat Croatia 2-1 in the 2026 global football championship's knockout rounds as Ronaldo scored his first-ever knockout-stage goal, Gonçalo Ramos struck a stoppage-time winner, and VAR ruled out a late equalizer for offside.
Bitcoin Price Prediction July 2026: Will BTC Recover to $70K or Drop Below $55K?
Bitcoin price prediction for July 2026: Can BTC recover to $70,000 or fall below $55,000? Explore ETF flows, key support levels, Fed outlook, and our Bitcoin forecast.
WEEX API Broker Program: Turn Your Trading Platform Into a Revenue Engine
Become a WEEX API Broker and earn up to 70% trading fee sharing. Get institutional-grade liquidity, OAuth Fast Connect, and a 4-5 day integration for your AI trading platform, bot, or signal community.
Do you want to buy CRCL?
A detailed breakdown of Circle's business fundamentals and valuation logic: The panic over OUSD and the market correction have triggered a short-term mispricing, presenting an opportunity for left-side positioning and legislative speculation below $60.
Wosh: Inflation has cooled in recent weeks, AI is reshaping the economy, and forward guidance has lost its necessity
Federal Reserve Chairman Waller clearly stated at the ECB forum that the Fed will abandon forward guidance on interest rates, with future decisions relying entirely on real-time economic data. He noted that inflation risks in the U.S. have decreased over the past four weeks, but the ultimate impact ...
The most secretive AI winner
A century-old company that sells toilets and produces MSG has seen its stock price soar by "positioning" core materials for AI chips. This article clarifies the explosive opportunities for domestic substitution of semiconductor materials in the A-share market.
Looking at Stripe's ambitions and the future of stablecoins from OUSD
Stripe enters the stablecoin network battle with OUSD, a comprehensive look at the third paradigm evolution of digital dollars and the new infrastructure for global payments in the AI era.
From Pump.fun to Collector Crypt: Has Solana's income throne changed hands?
The revenue from consumer applications on Solana is no longer solely reliant on meme coin issuance, but is gradually spreading to more consumption scenarios.
Dan Bin's latest speech: Don't miss out on a great era
Don't let hesitation trap your steps, and don't let shortsightedness waste the passing years—make sure not to miss this magnificent era that belongs to us.
Robinhood launches its own blockchain, no longer wanting to be a tenant on others' chains
While laying off employees and issuing bonds, it is the predictive market business that temporarily supports the income.
How to choose between buying discounted ETH, Bitmine, and SharpLink?
The answer may not lie in whose story is told better, but in specific dimensions such as cost of holding, financing ability, liquidity, and whether the narrative can be realized.
Semiconductor stocks plummet, yet Anthropic wants to create a 2nm chip
Abandoning TSMC and teaming up with Samsung. Anthropic launches a self-developed 2nm chip program, challenging Nvidia and starting a battle to break through computing power costs.
A South Korean company that learned the strategy of hoarding coins, from a bull market to delisting?
When the overall momentum of the Korean stock market is strong, this batch of cryptocurrency concept stocks, branded as the "Korean version of Strategy," finds itself at a crossroads of life and death.
Where is Zhao Changpeng's billion-dollar investment going? YZi Labs' investment landscape fully revealed
Zhao Changpeng's billion-dollar new "family office" YZi Labs investment landscape revealed: 70% of the funds are committed to the crypto ecosystem, while 30% are cross-industry bets on AI and biotechnology, launching a new capital experiment in the post-Binance era.
Ethereum Foundation Report: A Basic Guide to Ethereum for Governments and Financial Institutions
The Ethereum Foundation has released this non-technical introductory report aimed at government officials, central banks, regulators, and corporate decision-makers, explaining how Ethereum works, how it is governed, how it differs from other blockchains, and how institutions and governments are alre...
A pre-announced harvesting case: After the cryptocurrency price dropped by 99%, the public chain Saga exited to transform into AI
True failure often isn't a single price drop, but rather a pricing mechanism that repeatedly rewards those who tell stories while repeatedly punishing those who believe in the stories.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com

