- Institutional investors are stepping in again, with consistent buying activity recorded over the past few weeks.
- Market indicators show that Bitcoin’s availability on exchanges is shrinking, while accumulation has surged simultaneously.
Bitcoin [BTC] remains a key focus for investors and has risen 13% over the past month, though it continues to trade below $100,000.
Analysis indicates that if recent trends persist, Bitcoin could reclaim its previous highs. AMBCrypto identified several factors that may drive this rally.
A drop in Exchange Reserves and rising accumulation
The Exchange Reserve represents the amount of an asset held on centralized exchanges.
These exchanges act as major custodians, so when reserve levels decline, it often signals increased buying activity by investors.
A shrinking Exchange Reserve typically indicates that investors are moving assets into private wallets for long-term holding or transferring them to new custody solutions, reinforcing a bullish outlook for the asset.
Source: CryptoQuant
At the time of writing, only 2.47 million BTC remain on crypto exchanges, reflecting a shift in the market’s long-term outlook.
This declining Exchange Reserve has closely aligned with a surge in institutional Bitcoin purchases.
Meanwhile, Bitcoin spot ETFs have shown a consistent trend of inflows, signaling continued investor interest.
Since April, traditional investors have steadily accumulated Bitcoin, with one exception—on the 30th of April, they sold $56 million worth of BTC.
Source: Coinglass
Interestingly, the amount of Bitcoin sold remains significantly low compared to the total volume bought.
At the time of writing, $4.49 billion worth of Bitcoin had been purchased, compared to the mere $56 million sold during the same period.
If this significant buying pressure continues to build, Bitcoin maintains a strong chance of crossing into the $100,000 region. There are even more market sentiments supporting the possibility of a sustained rally.
Far from the top, Bitcoin whales are buying again
Using the Market Value to Realized Value (MVRV) metric, AMBCrypto confirms that Bitcoin has not yet peaked.
MVRV measures whether an asset is overvalued or undervalued, based on the ratio between market value and the price at which each unit last moved.
Source: CryptoQuant
At press time, Bitcoin’s MVRV sat at 2.1, indicating the market still holds significant room to trend higher.
Bitcoin is expected to maintain its upward trajectory until it approaches the 3.7 MVRV region, a level that, according to CryptoQuant data, often signals a market peak.
Meanwhile, high-liquidity investors are already accumulating Bitcoin, as indicated by the Spot Average Order Size metric.
This metric helps determine who is driving purchases—whether it’s retail traders or whales—and provides insight into the size of whale orders.
Source: CryptoQuant
Notably, large buy orders from whales are present in the market, indicating that this cohort has resumed accumulation.
These four metrics—declining Exchange Reserves, strong ETF inflows, a moderate MVRV ratio, and renewed whale activity—suggest Bitcoin is on track to reclaim the $100,000 region in May.