Bitcoin BTC/USD may be on the brink of its next bull run in the light of recent market trends, according to on-chain analytics provider CryptoQuant.

What Happened: Among several key indicators the analytics firm cited is a significant decrease in Bitcoin reserves on exchanges, a trend that often precedes price rallies. This reduction indicates less selling pressure as investors move Bitcoin to cold storage, thereby limiting the available supply.

The increase in stablecoin reserves on exchanges implies that investors are preparing to buy, indicating strong buying interest. Stablecoins represent ready-to-deploy capital, and their increasing presence on exchanges signals that traders are waiting for the right opportunity to enter the market.

"With reduced Bitcoin supply and growing buying power, the market is primed for a potential upward move," CryptoQuant wrote on X.

Furthermore, a supply-demand imbalance could indicate a bullish outlook for Bitcoin.

"As the market supply tightens and buying power builds, we could be on the verge of a price rally. Investors should stay alert for a potential breakout in the coming weeks," CryptoQuant concluded.

IntoTheBlock data shows exchanges netflows increased by 158.9%, while transactions greater than $100,000 increased from 8,377 to 8,970 in single day. Large transactions volume are up by 58.2%.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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