Bitcoin Leaps Towards Bullish Surge Amidst Accumulating Interest and Declining Supply

Amidst the anticipation of the upcoming halving, Bitcoin's price surge signals bullish momentum as investors accumulate coins. Institutional demand and a decline in supply on exchanges indicate a potential super cycle. Bitcoin's outperformance against traditional markets and the approaching US elections add to the bullish sentiment, while a technical analysis suggests an ascending triangle formation aiming for a new all-time high.

Bitcoin Poised for Bullish Surge as Accumulation Intensifies, Supply Dwindles

In a testament to the unwavering enthusiasm within the cryptocurrency community, Bitcoin (BTC) has exhibited a bullish resurgence, signaling a continuation of its upward trajectory. Having established a robust support level of approximately $65.5k in recent days, BTC briefly breached the $69k threshold on Thursday. While it has since stabilized around $67k during the early London session on Friday, the flagship digital asset is steadily forming a bullish pennant in anticipation of the eagerly awaited halving event later this month.

This bullish outlook is bolstered by the surging demand from institutional investors, fueled by the regulatory approval of several spot Bitcoin ETFs earlier this year. Many experts are convinced that a super cycle is imminent, characterized by an extended period of exceptional growth.

Dwindling Bitcoin Supply on Crypto Exchanges: A Bullish Indicator

On-chain data analysis conducted by CryptoQuant reveals a remarkable decline in Bitcoin supply on centralized exchanges. Over the past month alone, there has been a reduction of more than 90,700 BTC. Strikingly, the supply of Bitcoin on centralized exchanges is now less than two million, despite the notable rise in leveraged trading.

This divergence in Bitcoin supply on exchanges has escalated exponentially since early last year, indicating a clear advantage for the bulls. However, Glassnode has reported a notable increase in the transfer of Bitcoins from long-term holders to short-term traders on crypto exchanges. These short-term traders have added around 1.121 million BTC to their holdings, acquired from long-term investors.

"Following a historical tightness in supply, the divergence between long and short-term holder supply has started closing," noted Glassnode analysts. "As prices rise and unrealized profits held by investors increase, it tempts long-term holders to part with their holdings."

The significant decline in Bitcoin supply on exchanges aligns with the heightened demand from institutional investors through the recently approved spot BTC ETFs. However, the daily Bitcoin outflows from Grayscale's GBTC, expected to conclude in July, have exerted a notable dampening effect on bullish sentiment.

Macroeconomic Factors Auguring Well for Bitcoin

In recent quarters, Bitcoin has outperformed both traditional stock indexes and precious metals, despite experiencing a temporary setback in the past few weeks. The anticipated interest rate cuts later this year have further fueled the Bitcoin bullish sentiment, as investors seek refuge from the short-term uncertainty surrounding inflation.

Additionally, the United States is gearing up for its presidential elections later this year, where the crypto-friendly sentiment of the electorate could play a pivotal role in shaping the outcome.

Midterm Price Expectations: A New All-Time High on the Horizon

From a technical standpoint, Bitcoin is poised to reach a new all-time high in the near term. According to several analysts, the flagship coin has been forming an ascending triangle on the weekly time frame, following Thursday's bullish rebound.

"Bitcoin has formed an ascending triangle on top of weekly support," tweeted Jelle (@CryptoJelleNL), a respected crypto analyst. "Break out, and we're looking at a target of $82,000."

However, Bitcoin's dominance has been signaling a short-term reversal, having encountered significant resistance around 54 percent. Consequently, the altcoin industry could witness a fresh rally before the anticipated parabolic bull run of Bitcoin takes hold.