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- Sahana Vibhute
Sahana Vibhute
- Mar 06, 2026 08:31 UTC
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Bitcoin Supply Shrinks to 2017 Levels as Wallets Hit Record High—Is BTC Price Preparing for a Big Move?
Bitcoin wallets have surged to a record 58.45 million, while exchange reserves dropped to 1.17 million BTC, signaling growing long-term accumulation.
Despite recent price weakness near the $74K support zone, declining exchange supply could trigger a potential Bitcoin supply squeeze if demand strengthens.
Bitcoin price is flashing a rare combination of growing adoption and tightening supply, a setup that historically precedes strong price expansions. The bulls are attempting to lift the price above the bearish influence, while the on-chain data has also turned bullish. The BTC wallet holders are rising while the exchange supply is plunging. This divergence suggests that investors are increasingly moving their Bitcoin into long-term storage rather than keeping it ready for sale.
With this, the question arises: Is the price gearing up for a huge price action? Is Bitcoin preparing a move to $100K?
Bitcoin Adoption Continues to Expand
The steady rise in non-empty wallets indicates that Bitcoin’s network participation continues to grow despite recent price volatility. On-chain data from Santiment shows that the number of non-empty Bitcoin wallets has surged to a new all-time high of 58.45 million, up nearly 1.69 million in the past six months. At the same time, the amount of Bitcoin held on exchanges has dropped to 1.17 million BTC — the lowest level since December 2017.
Even more notable is the sharp decline in Bitcoin reserves on centralized exchanges. When BTC leaves exchanges, it typically means that investors are transferring coins to cold storage or long-term custody solutions, reducing the immediate supply available for selling. With only 1.17 million BTC currently held on exchanges, market liquidity is tightening. If demand rises during this period of reduced supply, Bitcoin could face a potential supply squeeze, amplifying price moves to the upside.
Bitcoin Price is Testing Key Support
From a technical perspective, Bitcoin is currently testing a critical resistance zone around $74,000, which previously acted as a strong support level during the 2025 rally. The weekly chart shows that BTC recently broke below an ascending trendline that supported the broader bull cycle. However, a rise above the immediate resistance may only push the price towards the ascending trend line.
The weekly RSI reached the lower threshold and has displayed a bullish divergence, suggesting that selling momentum may be weakening. Meanwhile, the MACD remains in bearish territory, indicating that the market is still in a short-term corrective phase. However, the selling pressure seems to have waned in the long term, and as the MACD levels display, there is the possibility of a bullish crossover, which may ignite a strong recovery.
Key Levels to Watch
- Immediate support: $74,000
- Major support: $48,000
- Trendline resistance: $91,500
A successful reclaim of the trendline could open the door for a retest of the $100,000 psychological level.
What This Means for the Crypto Market
The combination of record wallet growth and declining exchange supply suggests that long-term investors continue accumulating Bitcoin despite the recent pullback. If demand strengthens while exchange reserves remain low, BTC price could experience a supply-driven rally in the coming months.
However, failure to hold the $74K support level could extend the correction toward the $48K demand zone, where stronger buyer interest may emerge. For now, Bitcoin price appears to be in a short-term correction within a broader accumulation phase, with on-chain data hinting that the next major move could still favor the bulls.
FAQs
Investors are moving BTC to private wallets or cold storage for long-term holding, reducing coins available for sale and tightening market supply.
Yes. When fewer coins are available to sell and demand increases, Bitcoin can experience a supply squeeze that may drive prices upward.
If Bitcoin reclaims major resistance and demand rises while supply stays tight, the $100K level could become a realistic target in a strong rally.
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