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Bitcoin exchange reserves have plummeted to historic lows, signaling strong long-term investor conviction and a potential reduction in sell pressure.
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Despite this, the taker buy-sell ratio remains below 1, indicating buyers have yet to fully assert dominance in the market.
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According to COINOTAG data, the IOMAP indicator reveals robust support just below $108,000, with relatively light resistance between $110,000 and $110,600, setting the stage for a possible breakout.
Bitcoin exchange reserves hit multi-year lows while key on-chain indicators suggest strong support near $108K and potential for a breakout above $110K.
Historic Low Bitcoin Exchange Reserves Signal Reduced Sell Pressure
One of the most compelling bullish signals in the current Bitcoin market is the dramatic decline in BTC reserves held on centralized exchanges. As of early July, only 2.4 million BTC remain on these platforms, marking the lowest level in over three years. This trend reflects a growing preference among investors to move their assets into cold storage, effectively reducing the circulating supply available for immediate sale.
This shrinking float often precedes significant price appreciation, as limited supply constrains sellers’ ability to meet sudden spikes in demand. When combined with relatively light resistance levels, even moderate buying volume can trigger outsized price movements, creating fertile ground for a bullish rally.
Taker Buy-Sell Ratio Indicates Buyers Are Gaining Momentum
The taker buy-sell ratio, which measures the aggressiveness of buyers versus sellers in the market, currently hovers just below 1 at approximately 0.95. This suggests that while sellers still maintain a slight edge, buyers are increasingly active and closing the gap.
Historically, a shift of this ratio above 1 has preceded short-term upward price runs, signaling growing buyer conviction. Should this metric continue to rise in the coming days, it may provide the critical momentum needed to breach the $110,000 resistance level, potentially unlocking further gains.
IOMAP Data Confirms Strong Support and Minimal Resistance Near Key Price Levels
The In/Out of the Money Around Price (IOMAP) indicator offers valuable insight into Bitcoin’s supply dynamics by mapping wallet clusters based on purchase price. Currently, over 94% of BTC addresses hold coins that are in profit, which historically correlates with reduced selling pressure as holders are less inclined to liquidate at gains.
Notably, the IOMAP data identifies a significant support zone between $107,209 and $110,041, where a large concentration of wallets acquired BTC. This creates a formidable buy wall that could absorb selling pressure if prices dip.
Conversely, the resistance zone from $110,042 to $110,624 is relatively thin, indicating minimal overhead supply to impede upward price movement. This alignment of strong support and light resistance sets a favorable technical backdrop for a potential breakout.
Technical and On-Chain Indicators Align to Signal Imminent Breakout Potential
Bitcoin’s current price action near $108,235 aligns closely with key technical indicators, including the 0.236 Fibonacci retracement level, which has acted as a consolidation point. Horizontal resistance levels between $110,583 and $110,779 represent the immediate hurdles before a potential upward surge.
The convergence of these technical resistance points with on-chain IOMAP clusters underscores the strength of the current setup. Should BTC break decisively above $110,779 with accompanying volume, it could trigger a rapid advance toward the recent all-time high near $111,970.
However, failure to maintain support within the $107,209 to $110,041 range and a close below $103,584 could invalidate this bullish thesis, increasing the likelihood of a retest of lower support levels around $101,389.
Conclusion
Bitcoin’s exchange reserves at historic lows combined with strong IOMAP support zones and a taker buy-sell ratio nearing parity suggest the market is poised for a significant move. While the $110,000 level remains a critical barrier, a decisive breakout above this threshold could catalyze a swift rally toward recent highs. Traders and investors should monitor these key on-chain and technical indicators closely, as they provide a clear framework for potential price action in the near term.
