Investors are closely monitoring the cryptocurrency market as Bitcoin approaches a critical resistance level of $91.8K. This comes amid a significant drop in supply on exchanges, which has reached multi-year lows. Tom Lee, co-founder of Fundstrat, anticipates that the market is on the verge of a super-cycle, driven by increasing institutional demand and widespread adoption of cryptocurrencies.
Bitcoin is currently aiming to reclaim the $91.8K resistance level, which it lost following a recent Federal Open Market Committee (FOMC) meeting. This meeting triggered a broad market correction. Notably, the market structure still reflects higher lows on lower timeframes, suggesting that the overall upward trend remains intact. A successful recovery above $91.8K could lead to a sharp increase in momentum. Conversely, failure to break through this zone or a drop below $89.5K could result in a further decline, potentially retesting the $80K region, where a double-bottom pattern could emerge.
Supply Constraints Fueling Market Dynamics
The supply situation is critical as reserves on exchanges have plummeted to some of the lowest levels in years. In 2021, deposits stood at 88,000 BTC, and during the previous all-time high, they reached 126,000 BTC. Currently, even with Bitcoin hovering around $80K, the number of coins available on exchanges continues to diminish. This trend indicates that sell pressure is declining, with more Bitcoin being moved into cold storage, exchange-traded funds (ETFs), and long-term custodians. As exchange inventories shrink, any increase in demand could encounter a limited order book, making sharp price increases more likely.
Ethereum is also on the cusp of a pivotal breakout. The cryptocurrency recently faced resistance at $3,400 and has since retraced to the $3,000 to $3,100 support range. A rebound from this zone could trigger a substantial upward movement. However, should the price break down, it may lead to a decline towards $2,800. Despite short-term fluctuations, Ethereum’s price remains bullish, recently surpassing $4,000 with impressive resilience.
Institutional Interest and Future Predictions
Tom Lee remains optimistic about the future of both Bitcoin and Ethereum. He argues that the markets are still underestimating the potential impact of liquidity, institutional adoption, and monetary policy as we approach 2026. “Investors are still early,” he stated, describing cryptocurrencies as “the best-performing asset of them all.” He predicts that there will be 1.1 billion active crypto wallets by the end of 2025, characterizing this period as the fastest wealth accumulation cycle in history.
Lee emphasizes that cryptocurrencies are particularly sensitive to the business cycle. With the Institute for Supply Management (ISM) index expected to rise above 50 after over three years, historical trends suggest that such shifts can catalyze super-cycle rallies in Bitcoin and Ethereum. He reiterated his long-term outlook, suggesting that the market could already be entering a Bitcoin super-cycle, driven by structural changes in liquidity and growing institutional demand.
For Ethereum, he identifies dips towards $3,000 as offering significant long-term value, likening them to temporary pullbacks observed in high-conviction stocks such as Nvidia. With liquidity conditions projected to improve considerably in 2026, Lee is confident that major cryptocurrencies with strong fundamentals are well-positioned for substantial growth.
Stay informed with the latest updates and expert analysis on trends in Bitcoin, altcoins, decentralized finance (DeFi), and more as the cryptocurrency landscape continues to evolve.
