itcoin exchange reserves have been hovering around this year's lowest point, and this has sparked optimism in the crypto space.
The price of Bitcoin near the important psychological mark of $60,000 leaves ample reason for analysts to speculate what's next in line for the cryptocurrency market.
Bitcoin Exchange Reserves Hit Two-Year Low
According to data from CryptoQuant, Bitcoin reserves on most exchanges have shrunk by some 12.9% since the beginning of the year. The reserves are now only 2.62 million Bitcoin.
This shrinking volume of Bitcoin has shown that investors have started deploying funds to cold storage.
Lately, Bitcoin's price has retested the level of $60,000. That is a level that needs critical consensus by this cryptocurrency. At the time of writing, Bitcoin's value stands around $59K a 0.12% decline from the previous day.
Even though there's slight fluctuation, the low reserves might translate to less potential selling pressure if demand maintains an upward trajectory, hence creating a case for a bull runaway market.
Analysts Forecast Bull Market
These extremely low reserves are what crypto analysts believe can trigger a much-needed catalyst for Bitcoin to sustain the bull market.
Not many coins will then be available for a direct sell, and the market would be weaker, with no room for a price reduction as a result of a panic sell. The sentiment is clear: as long as demand holds steady or increases, Bitcoin has a promising road ahead.
