Bitcoin Market Braces for Major Price Surge Amid Growing Self-Custody Trend
Bitcoin is in a critical point as trading signs point to a large price shift soon. Mikuybull highlighted the possibility of BTC to achieve the price level of $111 thousand by Q4. He anticipated that the last logarithmic band could take the price of a Bitcoin to an astounding $215,000.
Further fueling the anticipation, data from the reputable platform CryptoQuant showed that Bitcoin exchange reserves are at their lowest this year. This kind of reserve decline is usually considered as being bullish given that it means lower levels of selling pressure. When the number of Bitcoins is low on stock exchanges, their supply decreases and this in turn leads to a higher price given the increasing demand.
The decline in exchange reserves also attests to another emerging trend in the crypto space: more and more people are deciding to keep BTC in cold wallets instead of exchanges. Increased self-custody therefore demonstrates the desire of investors to have full control over their assets given the risks of hacks on centralized exchanges. By moving their funds in this manner, these investors withdraw BTC from exchanges which may lead to even higher prices, in line with the above prediction.
Long-Term Bitcoin Holding
Furthermore, such an approach of holding Bitcoin for the long term could bring about stability to the market. Whenever buyers move their coins into cold storage, it markets a message of intent that they wish to hold for long expecting a yield eventually. This behavior minimizes the chances of a herd like situation where the prices drop by a significant level due to everyone trying to sell their shares. If more investor embark on this strategy the market may gain stability and less likely to be affected by high frequent fluctuant prices.
On the other hand, another influential participant in the crypto community, Jelle, pointed out that although it remains above these support levels, BTC has not been able to return to the $60,000 region. However, the cryptocurrency is still quite solid despite certain instability in the market these days. Jelle also added that overtrading should be avoided several times when the economy is volatile.
While Bitcoin is bobbing in and out of these waters, the market ever looks at whether it could cut above the existing bar by reaching the price target fixes by these experts. The next several weeks might become critical for BTC and the market could turn in a way which will set its further development for several years.
Read more: https://www.tronweekly.com/bitcoin-market-braces-for-major-price-surge/
Text source: TronWeekly
