Key Points
- Bitcoin exchange reserves have hit a five-year low, potentially indicating a bullish rally.
- 94% of Bitcoin holders are currently profiting, contributing to positive market sentiment.
Bitcoin’s [BTC](https://www.btcnews.com/price/bitcoin/) presence in the news has been constant due to its strong bullish momentum.
The cryptocurrency market has experienced a significant shift, with BTC breaking out of a bullish flag pattern, sparking hopes for further price growth.
Decrease in Bitcoin Exchange Reserves
Data from CryptoQuant shows that BTC reserves on exchanges have dipped to their lowest since 2017. This decrease in exchange reserves typically indicates increasing buying pressure.
With the current price rally of Bitcoin, this sentiment could suggest a further price rally following the influx of inflow.
The low reserves imply that less BTC is available for immediate liquidation, potentially leading to price surges in the upcoming days.
Surge in Net Unrealized Profits
In the past 24 hours, Bitcoin’s net unrealized profits have soared, showing that a large portion of BTC holders have unrealized gains.
This indicates growing confidence in the market, with more holders retaining their profits. This results in reduced selling pressures and an increase in bullish sentiments for Bitcoin.
A staggering 94% of Bitcoin holders are currently in profit. This fact creates a bullish undertone in the market.
When holders are already profiting, they tend to resist selling during short-term fluctuations, further tightening Bitcoin’s supply.
With the unrealized profit surge supported by the majority of holders profiting at the current price, it’s likely that the Bitcoin bullish rally will continue in the long term.
Furthermore, the king coin recently broke out of a bullish flag pattern. This technical signal typically indicates further price gains.
Given that the exchange reserve continues to fall and that unrealized profits remain strong, the breakout only strengthens the case for an extended BTC rally.