Bitcoin may be on the verge of a powerful bullish breakout, with technical and on-chain indicators pointing to a potential price surge to $143,000. Analysts and traders are watching closely as BTC forms a classic cup-and-handle pattern, while exchange supply hits its lowest level in over six years.
On Tuesday, Bitcoin was trading at $109,860, up nearly 10% from its monthly low and a massive 50% higher than April’s bottom. With market sentiment heating up, all eyes are on a looming supply squeeze that could accelerate gains.
Supply on Exchanges at 6-Year Low
According to Santiment data, Bitcoin’s supply on exchanges has plummeted to 1.18 million coins a level not seen since December 2017. This figure represents a dramatic decline from its peak of 3.25 million in March 2020.
The downtrend has accelerated in 2024. On January 1, exchange supply stood at 1.53 million. In just six months, that number has dropped by nearly 23%, suggesting that investors are increasingly opting for self-custody, a behavior often associated with long-term holding.
At the same time, only about 450 new Bitcoins are mined daily (approximately 3,150 per week), while large corporate buyers such as Strategy, Metaplanet, Twenty One, KULR Technology, and MicroCloud Hologram are scooping up thousands of BTC weekly.
Miners themselves now hold 1.7 million BTC, the lowest since 2010, adding further pressure to supply.
ETF Demand Surges to $131 Billion
Demand from spot Bitcoin ETFs continues to skyrocket. On Monday alone, they attracted $386 million in net inflows, bringing the total to $44 billion this year. These ETFs now control Bitcoin holdings worth $131 billion, or roughly 6% of total supply.
The imbalance between surging demand and tightening supply has set the stage for what many see as a pivotal move upward.
Cup-and-Handle Pattern Targets $143K
On the technical side, the daily chart reveals a cup-and-handle formation, one of the most well-regarded bullish continuation patterns. The “cup” has formed between $74,558 (bottom) and $109,220 (top), with the handle currently nearing completion.
This setup, with a depth of approximately 31%, suggests a breakout target of $143,360 when applied from the resistance neckline. For many analysts, this projection reinforces the bullish case.
Crypto analyst Crypto Michael, known for accurately calling the $15,300 bottom, believes the next leg of Bitcoin’s historic bull run could begin this week.
Final Thoughts
Between declining exchange supply, rising institutional demand, miner reserve depletion, and bullish technical formations, Bitcoin appears to be aligning for a major upward move. While volatility and resistance are expected, current conditions suggest the crypto market could be entering its next breakout phase.
If confirmed, the $143K target could be just the beginning of a broader market expansion.
