Bitcoin eyes $116K breakout as its bullish structure holds, supported by strong accumulation and shrinking exchange supply since 2022.
BTC surged over 600% from 2022 lows with institutional backing, while exchange reserves dropped 1M+ BTC fueling bullish momentum.
With key resistances breached and reserves at 2.4M BTC, Bitcoin builds pressure for a potential push toward $165,000 levels.
Bitcoin continues its aggressive push higher, with technical signals pointing to a potential breakout past $116,652. According to market analyst Javon Marks, Bitcoin appears poised to unlock this resistance level. A break above it could open the door to a broader rally toward $165,000. Price action, dating back to late 2022, reveals a full bullish cycle forming. Bitcoin bottomed near $15,500, rebounded steadily in 2023, and exploded past $100,000 in 2024. With higher highs and higher lows intact, bulls retain full control of the long-term structure.
Source: Javon Marks
Strong Foundation and Accelerated Growth
Prices fell from $69,000 to $15,500 in the bearish cycle of 2022. The support at $15,500 remained intact till the end of 2022. This zone marked the beginning of the sustained recovery of Bitcoin. At the beginning of 2023, Bitcoin bounced in a range between $20,000 and $32,000, consolidating strength. Towards the year's end, Bitcoin reached $35,000 and ended at $45,000, preparing for the intense 2024 rally. The rally saw days when the price of Bitcoin was $100,000, gaining more than 120% from $45,000. Resistance zones at $67,500 and $72,000 were easily conquered.
Moreover, key technical levels now rest far below current price action. Bitcoin is above its moving averages. Volume data reveals active participation from institutional and retail traders. The ongoing pattern of higher lows supports the bullish momentum. At the time of writing, Bitcoin trades at $105,000, slightly off its all-time high of $110,000.
Exchange Supply Collapse Fuels Bullish Sentiment
Meanwhile, Bitcoin’s exchange reserves have dropped sharply since mid-2022. According to Merlijn The Trader, reserves peaked at 3.4 million in July 2022 when Bitcoin traded at $20,000. Since then, a steady decline in exchange holdings has aligned with price increases. From late 2023 through early 2025, reserves plunged from 3.1 million to just 2.4 million BTC.
Source: Merlijn The Trader
This 500,000 BTC reduction marks the sharpest drop in recent years. This supply squeeze supports Bitcoin’s parabolic price movement. The current low reserves reflect growing accumulation and long-term holding behavior.
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