Bitcoin Liquidity Hits Seven-Year Low As Accumulators Stack 373,700 BTC In A Month

Bitcoin (BTC) liquidity is drying up fast, as the metric recently hit a seven-year low, reaching around 3.12 million BTC, the lowest level since ￰0￱ occurred as BTC continued to trade below the 99-day Moving Average (MA), located around $112,086. Bitcoin Liquidity Dries Up Amid High Demand According to a CryptoQuant Quicktake post by contributor Arab Chain, Bitcoin’s sell-side liquidity is drying up at a rapid pace, recently hitting a seven-year low at 3.12 million ￰1￱ Reading: Bitcoin Cycle Score Turns Negative With Trend Below $106,780 – When Will The Correction End? As BTC’s supply tumbles sharply, the cryptocurrency is trading in the low $110,000 range, indicating a delicate balance between falling active circulating supply and growing institutional ￰2￱ on-chain data shows that demand for BTC from long-term holders’ addresses has been steadily ￰3￱ the past 30 days, long-term investors have accumulated 373,700 BTC.

Long-term investors accumulating BTC during the latest dip shows that there is sufficient market demand for the flagship cryptocurrency despite a volatile crypto ￰4￱ Chain remarked that the market is currently in a “quiet accumulation” phase ahead of a potential ￰5￱ CryptoQuant analyst emphasized that the Liquidity Inventory Ratio (LIR) has crashed to around 8.3 months, suggesting that current market liquidity covers less than nine months’ worth of demand – confirming the rapid depletion in BTC’s sellable ￰6￱ the uninitiated, the LIR measures the balance between available liquidity and active trading demand in the market, showing whether market makers are providing sufficient depth relative to recent trade volume.

A high LIR suggests ample liquidity and stable price movement, while a low LIR indicates thinner order books and higher vulnerability to volatility or ￰7￱ medium-term outlook for BTC looks bullish, due to a combination of declining liquidity and growing demand from institutional and long-term ￰8￱ Chain added: If this trend continues through the end of the fourth quarter, Bitcoin’s price could surpass $115,000, especially if accompanied by rising buying flows from US investment funds and ETFs, supporting the continuation of the current bullish ￰9￱ Top Not In Yet While some analysts predict that BTC may have already peaked this market cycle, others are confident that the top cryptocurrency is yet to hit its cycle ￰10￱ on-chain data indicates that BTC NVT Golden Cross is yet to enter the territory that marked previous cycle ￰11￱ Reading: Bitcoin’s Next Bull Phase Could Be Near As BTC-Stablecoin Ratio Plummets Similarly, fellow CryptoQuant analyst PelinayPA predicted that there is a 55% chance that Bitcoin has not yet topped for the current market ￰12￱ press time, BTC trades at $111,295, up 2.1% in the past 24 ￰13￱ image from Unsplash, charts from CryptoQuant and ￰14￱