Binance’s Bitcoin reserves have plummeted to their lowest level in over a year, with approximately 613,000 BTC removed from circulation. This sudden drawdown suggests that investors are actively transferring coins off the exchange, reducing available supply and increasing potential for price increases.
As Bitcoin trades near $111K, the decreasing balance has reduced the number of coins available for sale, making the market more sensitive to upward momentum. On-chain data indicates a significant pressure zone for short traders, with roughly $4.8 billion in short positions at risk of being liquidated if prices reach around $116K.
The imminent threat of forced buybacks from short liquidations has created a “fuel zone” for potential price rallies. Traders are holding their breath as the market inches closer to this critical level, and a move past $113K could unlock further gains towards $116K.
Bitcoin’s momentum has been improving, with recent trading data showing signs of recovery and buying pressure. However, resistance remains strong, and traders are waiting for confirmation above key levels before committing to larger positions.
Source: https://ambcrypto.com/613k-bitcoin-vanishes-from-binance-the-supply-shock-has-begun