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I'm creating a smart contract on the Ethereum network that needs to read the balance of an address in a different network (e.g. bitcoin). I tried looking into Chainlink oracles and I couldn't find anything that specifically does that.

I really don't want to create an external custom API as I want to keep the solution as "on-chain" as possible.

Is there an oracle available or some other solution that would do this?

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You won't achieve an on-chain solution, because the thing that you are looking for is off-chain.

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take a look at www.tellor.io. They can do this for sure. Depending on what exactly you need though, you may need to work on something custom (e.g. a bunch of information that you need an archive node for is tougher than just a contract call), so I'd just reach out in their discord or let me know what you're actually trying to bring over

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