Bitcoin has shown renewed growth, reaching $108,200. This 10% increase followed a dip to $98,400. Analysts discuss the potential rise to $165,000 against a backdrop of decreasing exchange volumes.
Price Surge of Bitcoin
Bitcoin (BTC) prices rose to a weekly high of $108,200 on June 25, increasing 10% from a local low of $98,400 three days prior. BTC has reclaimed a key support level and continues to consolidate below its all-time high of $112,000.
Growth Prospects to $165,000
Analysts note that Bitcoin has formed a bullish pennant pattern, which suggests a potential rise of 54% to $165,000. "If Bitcoin breaks above $110,000, this could lead to a significant price surge," said popular crypto analyst Jelle. However, it is important to note that the success rate of a bullish pennant is only around 54%, making it a relatively unreliable pattern.
Low Bitcoin Exchange Volumes
According to data from blockchain analytics platform CryptoQuant, Bitcoin exchange volumes have hit a 10-year low, averaging only 40,000 BTC per day. This indicates that investors are moving their assets to self-custody wallets, reflecting their confidence in Bitcoin as a long-term store of value. Bitcoin reserves on exchanges have decreased to 2.92 million BTC, the lowest level in seven years.
The rise of Bitcoin and decreasing exchange volumes indicate a potential long-term investment trend in this cryptocurrency. Investors are showing confidence by transitioning their assets to secure wallets, which may lead to a liquidity shortage in the market.
