Earlier today the price of Bitcoin (BTC) hit $18,815 on Binance for the first time in nearly three years. Following the breakout, BTC is on track to see a new all-time high in the near term for four significant reasons.
The factors that make a new record high likely are growing institutional demand, reduced selling pressure, a spot-driven market rally, and the significance of the $18,500 resistance breach.
BTC/USD 4-hour chart. Source: TradingView.com Bitcoin is seeing reduced sell pressure
For Bitcoin holders to sell, they need to first deposit BTC to exchanges. When BTC exchange reserves drop, it often indicates that there is low sell-side pressure in the market.
According to data from Glassnode, the year-to-date Bitcoin balance on exchanges dropped 18%. Analysts at the on-chain market analysis firm said that BTC liquidity is continuing its downward trajectory.
This trend is significant because it shows there is hardly any appetite to sell Bitcoin at the current price level despite