Bitcoin Rally Builds as Halving Cycle Aligns With Shrinking Supply

• Bitcoin’s exchange supply dropped 21% in just four months.
• Halving cycle fractal remains incomplete without sharp upward momentum.

Bitcoin continues its upward trajectory, breaking records while showing signs of further potential growth. Analysis from XForceGlobal indicates that Bitcoin has entered the “orange box,” a technical zone historically followed by parabolic rallies. 

This stage has marked the start of explosive price moves in previous halving cycles. Although Bitcoin is late in the bull market phase, analysts suggest it is still early within its broader macro trend. 

They note that the current cycle has yet to display the steep upward slope seen in past runs, leaving the halving-cycle fractal incomplete.

XForceGlobal warned that shorter-term fluctuations are misleading and should not distract from the long-term trajectory. If Bitcoin continues to follow historical halving patterns, a sharper rally could still occur. 

Exchange Supply Continues to Decline

Santiment reports that Bitcoin reached a new all-time high of $113,923, posting a 13.6% gain from its June 22 local bottom. Despite the rally, exchange supply continues to shrink. In the past four months alone, 315,830 BTC, roughly 21% of the available exchange supply, has been moved off platforms.

This long-term trend dates back to July 2020, with 1.88 million BTC (a 61% decrease) shifting into self-custody. The drop in exchange-held BTC indicates growing confidence among long-term investors.

Analysts note that with fewer coins available for immediate sale, the chance of sharp corrections decreases, supporting a continued bullish bias.

Bitcoin Tests Resistance Near $120K

Bitcoin is now trading at $117,695, with a daily gain of 1.43%. The move is supported by strong volume, totaling 1.31K BTC, suggesting strong buying interest. 

The Relative Strength Index (RSI) stands at 73.20, signaling overbought conditions but also confirming ongoing bullish momentum.BTC is currently testing resistance at $117,750. If it breaks above this level, the next target is $120,005. 

On the downside, key support lies at $111,789, a level tested in May. Analysts suggest that holding above $117,000 could trigger a new leg higher, while a drop below $111,789 might prompt a short-term reversal.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.