Bitcoin’s (BTC) ongoing rally above $ 64,000 coincided with a sharp drop in its reserves on all exchanges.

According to data from CryptoQuant – a South Korea-based blockchain analytics service – the amount of Bitcoin held in Exchange wallets fell to just 2,379 million BTC earlier this week, a low in more than three years. Currently the reserve is around 2.38 million BTC.

CryptoQuant noted that declining Bitcoin reserves indicate that fewer BTC tokens are available “for sale, purchase of altcoins, and margin trading”. This also reflects the intentions of the traders towards crypto ‘HODL’.

Bitcoin demand rises amid whales and fish

On the other hand, crypto demand from retail and institutional traders seems to be growing, with the number of wallets with BTC values ​​over 100 and 100 respectively.

Online analyst Willy Woo published a report in August 2021 discussing Bitcoin’s “supply shock” in the face of growing demand, and concluded that the cryptocurrency’s death rate must be at least $ 55,000 per token.

The “conservative” target remains lower than the price forecast of the analyst pseudonym PlanB until the end of 2021, based on its stock flow model.

$ 63K ✅ https://t.co/tj6SSwSzKR

– PlanB (@ 100 trillion USD) October 19, 2021

Meanwhile, PlanB’s Bitcoin price prediction for November 2021 is around $ 98,000, well above $ 70,000, the most preferred target for options expiring on the 26th of the same month, as shown in the chart below.

Macro fundamentals of BTC price

Bitcoin’s bullish chain fundamentals are likely to be further bolstered by the use of Wall Street.

On Tuesday, ProShares became the first ETP company to launch an Exchange Traded Fund (ETF) based on Bitcoin Futures on the New York Stock Exchange. As an important milestone for Bitcoin investment opportunities, the listing opened up new access to BTC for institutional investors.

For example, Tom Lee, co-founder of Fundstrat Global Advisors, said he predicts Bitcoin ETFs will attract at least $ 50 billion over the next 12 months, reiterating his team’s year-end price target of $ 100,000 for BTC.

Tech-wise, Bitcoin appears to be headed for a record high of $ 65,000, which is currently acting as a resistance.

On the flip side, Bitcoin’s Relative Strength Index (RSI), a momentum indicator that analyzes an asset’s overbought / oversold signals, has reported that the price of the cryptocurrency is too high on the candlestick chart.

Related: Bitcoin hits its highest daily close ever as the BTC / euro pair hits an all-time high

If a correction occurs, Bitcoin’s next support target could be at $ 57,500, which acts as the 78.6% fib retracement level on the Fibonacci retracement chart, which is between the $ 65,000 high and the $ 30,000 high.

This level also coincides with Bitcoin’s 20-day exponential moving average (green wave in the graph above). The previously indicated level has acted as strong support during the Bitcoin uptrend.