Bitcoin has surged to $116,000, propelled by unprecedented institutional accumulation and critically low exchange inflows. Market data reveals daily BTC deposits to exchanges have plummeted to approximately 3,200 BTC – the lowest level recorded since 2015. This supply constraint significantly reduces the risk of sudden price corrections.
A substantial demand wall has formed between $108,795 and $110,624, where over 645,000 addresses hold roughly 476,650 BTC. This concentration creates a robust support level, effectively cushioning against downward volatility and reflecting strong holder conviction.
Technical analysis presents a nuanced outlook. While Fibonacci projections indicate potential upside targets at $121,000 and $135,000 – with Bitcoin’s recent wick near $116,500 aligning with the 0.5 Fibonacci level – a bearish divergence in the Relative Strength Index (RSI) signals waning momentum. This divergence suggests caution despite the market not yet being technically overextended.
The current rally is primarily driven by corporate and institutional accumulation strategies. However, traders are advised to monitor the RSI divergence closely, as it introduces a note of vigilance amid otherwise bullish indicators including supply scarcity and strong support zones.