An analyst has highlighted that the availability of Bitcoin for trading has quietly diminished during its recent consolidation phase.

This reduction in liquidity could be a significant factor influencing Bitcoin’s price movements, potentially setting the stage for a future breakout. As the asset’s supply tightens, market dynamics may shift, leading to increased volatility and price changes.

Bitcoin Could Reach New All-Time Highs: Analyst Insights

Analyst Willy Woo recently posted on X about the decreasing availability of Bitcoin on major exchanges. According to Woo, the amount of Bitcoin in spot wallets has been steadily declining, with the total held by centralized organizations now down to just 2.3 million BTC.

• The graph in Woo’s post shows a notable decrease in spot and “paper” Bitcoin reserves over the last few years.
• “Paper” BTC refers to derivative products linked to Bitcoin that do not require actual ownership of the asset.

This decline in exchange inventories suggests that the reduction in spot BTC is not being offset by an increase in paper BTC. Exchange supply typically refers to the portion of Bitcoin that is available for trading. Therefore, a lower available supply could indicate positive future price movements due to supply-demand dynamics.

The graph also highlights that this inventory reduction coincided with a period when Bitcoin’s price was struggling after reaching a new all-time high. Woo points out that while Bitcoin’s price remained stagnant for a couple of months, the available BTC supply was decreasing, with no corresponding increase in paper BTC.

Woo concludes that the decreasing available supply is a positive sign for Bitcoin’s future. “It’s only a matter of time before BTC surpasses its all-time highs,” he says. Additionally, Woo notes that capital inflows into Bitcoin have recently started to recover after a significant decline, further supporting the potential for future price increases.

Bitcoin Price Forecast: BTC Holds Steady at $69,000 Amid New Capital Inflows

Bitcoin (BTC) is currently trading at $69,098, reflecting a slight increase of 0.05%. The price is above the pivot point of $68,708, suggesting potential bullish movement. Immediate resistance is at $70,029, followed by $71,458 and $72,946.

Support levels are at $66,394, $64,947, and $63,490. The Relative Strength Index (RSI) at 55.41 indicates neutral momentum. The 50 EMA at $68,708 is providing strong support.

The upward trendline around $69,000 is bolstering Bitcoin’s price. The formation of doji candles above this level indicates potential buying trends. RSI and EMA suggest a buying trend, with the next move likely above $68,500.

Bitcoin Network Flows: New Capital Inflows Boost Market Sentiment

According to recent data from NewsBTC, network inflows increased during Bitcoin’s all-time high but slowed during subsequent consolidation. However, inflows from spot exchange-traded funds (ETFs), which had previously disappeared, have returned with these new capital inflows.

This resurgence of ETF inflows, depicted in light green, signifies renewed interest and investment in Bitcoin, likely contributing to its current price stability and potential for future gains.

The network data highlights a significant trend: as new capital enters the market, Bitcoin’s price finds support and stability, potentially setting the stage for another upward movement. This aligns with Willy Woo’s analysis that reduced Bitcoin availability on exchanges may drive prices higher as demand outweighs supply.

In conclusion, technical indicators and fresh capital inflows from ETFs support Bitcoin’s position favorably for potential gains. Traders should consider these factors when making investment decisions, watching for breaks above key resistance levels to confirm bullish trends.