Bitcoin price could be on the cusp of a strong bullish breakout, potentially reaching $143,000 after forming a cup-and-handle pattern, as market participants anticipate a supply squeeze.
Bitcoin (BTC) was trading at $109,860 on Tuesday, up nearly 10% from its lowest point this month and 50% above its April low.
Santiment data indicates that Bitcoin could face a supply squeeze as demand rises. The supply of Bitcoin on exchanges has dropped to 1.18 million, its lowest level since December 2017.
This supply peaked at 3.25 million in March 2020 and has been in freefall since. The decline has accelerated this year, with supply at 1.53 million on January 1.
This trend suggests that more investors are moving their coins to self-custody wallets—a sign that they don’t intend to sell.
Meanwhile, recent data shows that demand is rising faster than new coins are being mined. Only about 450 new Bitcoins are mined each day, or roughly 3,150 per week. Bitcoin miners now hold 1.7 million coins, the lowest level since 2010.
At the same time, companies are buying thousands of coins per week, with Strategy leading the charge. Other top purchasers include Metaplanet, Twenty One, KULR Technology, and MicroCloud Hologram.
Spot Bitcoin exchange-traded funds are also seeing substantial demand this year. They recorded over $386 million in inflows on Monday, bringing the cumulative total to $44 billion. These ETFs now hold Bitcoins worth $131 billion, or 6% of total supply.
Therefore, rising demand and declining exchange supply suggest Bitcoin may be primed for a strong bullish breakout.
This aligns with a forecast from Crypto Michael, a well-followed analyst who predicted the bottom at $15,300. He believes the next phase of the greatest bull run may begin this week.
Bitcoin price technical analysis
The daily chart shows that BTC has formed a textbook cup-and-handle pattern. The upper side of the cup sits at $109,220, while the lower side is at $74,558.
The price is now close to completing the handle portion of this pattern, signaling potential for further upside. The pattern has a depth of 31%, and projecting that from the cup’s upper side yields a target of $143,360.
