On September 12, CryptoQuant analyst Tarek On-Chain posted that "Bitcoin reserves on exchanges are significantly decreasing, a trend that often precedes price rallies. This reduction indicates a decrease in selling pressure as investors move Bitcoin to cold storage, limiting the available supply.

Historically, price peaks have often followed such fluctuations, suggesting a similar scenario may be unfolding now. Meanwhile, stablecoin reserves on exchanges are increasing, indicating investors are poised to enter the market. Stablecoins represent capital that can be deployed at any time, and an increase in their reserves suggests traders are waiting for the right time to enter. This growth signals strong buying interest. The combination of decreasing Bitcoin reserves and increasing stablecoin reserves sets the stage for a price breakout.

With decreasing Bitcoin supply and increasing buying power, the market is primed for a potential rally. Historically, this imbalance in supply and demand has resulted in significant price increases. The decrease in Bitcoin reserves and increase in stablecoin reserves suggest a bullish outlook for Bitcoin. With a tightening market supply and accumulation of buying power, we may be on the verge of a price rebound. Investors should remain vigilant in the coming weeks, watching for potential market upside opportunities."