TLDR

Bitcoin price declined to $103,200 but is now consolidating above $105,000 with potential for recovery above $106,000
Bitcoin exchange reserves hit an all-time low of under 2.5 million BTC, creating supply shortage conditions
Institutional accumulation continues with MicroStrategy adding 7,390 BTC in May and spot ETFs seeing $5.23 billion inflows
Technical indicators show mixed signals with RSI at neutral 52 and MACD turning slightly bearish
Limited exchange supply historically drives price volatility and could fuel sharp moves in either direction

Bitcoin price has entered a consolidation phase after testing support at $103,200. The cryptocurrency is now trading above $105,000 and showing signs of potential recovery.

The recent decline saw Bitcoin fall below the $106,500 support zone. BTC traded as low as $103,200 before finding support at that level.

Bitcoin is currently trading above the 100 hourly simple moving average. The price has recovered above the $104,200 level and the 23.6% Fibonacci retracement of the recent decline.

Immediate resistance sits near $105,550 where a bearish trend line has formed. The first key resistance level is at $106,000.

Bitcoin
BTC Price

Supply Shortage Creates Market Tension

Bitcoin exchange reserves have reached an all-time low of under 2.5 million BTC according to CryptoQuant data. This represents a continued decline in the amount of Bitcoin held on centralized exchanges.

The supply shortage comes as Bitcoin recently reached a new all-time high above $111,500. This creates a divergence between declining exchange reserves and rising prices.

Historically, reduced Bitcoin supply on exchanges has driven price increases when demand remains strong. Many analysts view this as a setup for increased volatility in either direction.

The limited supply available for trading could fuel sharp price movements. This situation has developed as institutional accumulation continues across multiple sectors.

Bitcoin: Exchange Reserve – All Exchanges

Institutional Demand Remains Strong

MicroStrategy added 7,390 BTC to its holdings in May 2025. The company now holds 576,230 BTC representing roughly 2.75% of total Bitcoin supply.

MicroStrategy acquired its Bitcoin at an average price of $69,726. Other public companies including GameStop and Japan-based Metaplanet have also been adding to their positions.

Spot Bitcoin exchange-traded funds brought in $5.23 billion in inflows over the past month. This data comes from SoSoValue tracking of ETF performance.

Large holders with between 1,000 and 10,000 BTC have been steadily accumulating. Much of this Bitcoin is being moved to cold storage rather than kept on exchanges.

Government entities are also increasing their Bitcoin exposure. The UAE and Pakistan have ramped up accumulation efforts in recent months.

U.S. lawmakers are discussing the creation of a national Bitcoin reserve. This adds to the institutional demand narrative supporting current price levels.

Technical indicators show mixed signals for Bitcoin’s near-term direction. The relative strength index stands at 52 indicating neutral momentum conditions.

The moving average convergence divergence indicator has turned slightly bearish. Short-term moving averages are showing some downward pressure on price.

Bitcoin remains well above both the 200-day exponential and simple moving averages. Both longer-term indicators are trending upward supporting the bullish outlook.

A recovery above the short-term moving average around $106,000 could target $110,000 or higher. However, failure to maintain current support could see Bitcoin decline toward $98,000 or $94,000.

The next key resistance level sits at $106,800 which aligns with the 50% Fibonacci retracement. A close above this level could send Bitcoin toward $108,000 and potentially $110,000.

The post Bitcoin (BTC) Price Prediction & Analysis: The Supply Crunch That Has Analysts Watching Closely appeared first on CoinCentral.

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Filed under: News - @ June 2, 2025 8:29 am