Bitcoin reserves fell to historic lows near 2.43M BTC as long-term holders and institutions maintained aggressive accumulation patterns.
Despite corrections from $110K to $75K, stable low reserves suggest strong holder confidence and long-term bullish sentiment.
Oversold RSI and hidden MACD divergence hint at a potential reversal, with $102K–$104K acting as strong support amid weakening sell pressure.
Bitcoin's exchange reserves have fallen to all-time lows, according to data from cryptoQuant posted by Contelegraph on X, which has stoked new optimism. Reserves gradually decreased from 2.75 million BTC to roughly 2.43 million BTC between late December 2022 and early 2025. This steady withdrawal suggests aggressive accumulation by institutions and long-term holders.
Source: Cointelegraph(X)
Furthermore, the sharp drop in reserves from March to May 2023 was accompanied by a robust rebound in the price of Bitcoin. Bitcoin rose from over $80,000 to over $100,000 during this time. As a result, present market dynamics are still shaped by the inverse relationship between diminishing reserves and price strength.
Supply Dynamics Point Toward Long-Term Confidence
Besides the decline in reserves, the market structure suggests deep investor conviction. Throughout 2023, Bitcoin's exchange holdings decreased steadily, dropping below 2.6 million BTC by March. This reserve depletion aligned with a surge in institutional adoption and increasing network activity. By March 2024, Bitcoin reached a peak of approximately $110,000, just as reserves bottomed near 2.43 million BTC.
However, following this peak, Bitcoin entered a correction phase. Price action pulled back to around $75,000 while reserves remained stable near historical lows. Hence, this decoupling suggests holders continue accumulating despite short-term price weakness. Such behavior often signals belief in Bitcoin's long-term potential.
Short-Term Correction Hints at Bullish Reversal
In recent weeks, Bitcoin has shown strong volatility as per CryptoBoss analysis. From late April to mid-May 2025, BTC surged from $94,000 to highs near $112,000. The rally broke past the $100,000 resistance with rising volume and strong bullish momentum. However, late May brought a correction. Bitcoin fell from its highs and broke the ascending trendline that supported the earlier rally. By early June, the price dipped below $105,000, touching support near $104,770.
Source: CryptoBoss
Additionally, technical indicators suggest possible reversal conditions. The RSI dipped below 30, reflecting oversold signals. Moreover, the MACD showed a hidden bullish divergence. While price made a higher low, the MACD posted a lower low. Hence, this pattern may signal upside momentum returning. Support zones between $102,000 and $104,000 could now anchor a recovery. Besides, trading volume decreased during the selloff, hinting at weakening bearish pressure.
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