On September 12, CryptoQuant analyst Tarek On-Chain wrote: “Bitcoin reserves on exchanges are decreasing significantly, a trend that often occurs before price rebounds. This reduction suggests that selling pressure has eased as investors transfer Bitcoin to cold storage, limiting available supply.
Historically, such volatility has often been followed by price spikes, suggesting that a similar situation may be playing out now. Meanwhile, stablecoin reserves on exchanges are increasing, suggesting that investors are preparing to enter the market. Stablecoins represent capital that can be deployed at any time, and their increasing reserves suggest that traders are waiting for the right time to enter the market. This growth indicates strong buying interest. The combination of decreasing Bitcoin reserves and increasing stablecoin reserves sets the stage for an upward price breakout.
As Bitcoin supply decreases and purchasing power increases, the market is ready for a potential rally. Historically, this supply-demand imbalance has led to significant price increases. The decline in Bitcoin reserves and the increase in stablecoin reserves indicate a bullish outlook for Bitcoin. As market supply tightens and purchasing power accumulates, we may be on the verge of a price rally. Investors should remain vigilant in the coming weeks for potential market upside opportunities."
