Despite Dips, Bitcoin Exchange Reserves Reach Lowest Values Since 2018
21 Settembre 2021 - 09:00PM
NEWSBTC
On-chain data shows Bitcoin exchange reserves continue to decline
despite the recent dips, as values reach lowest since 2018. Bitcoin
Exchange Reserves Continue To Go Down As pointed out by a
CryptoQuant post, the BTC all exchanges reserve is moving down
despite the recent downtrend in the price of the cryptocurrency.
The Bitcoin all exchanges reserve is an indicator that shows the
total amount of coins held on all centralized exchange wallets. A
dip in the value of the metric suggests investors are transferring
their BTC to personal wallets, either for holding or for selling
through OTC deals. On the contrary, an increase in the indicator
implies investors are sending their coins to exchanges for
withdrawing to fiat and stablecoins, or for purchasing altcoins.
Here is a chart showing how the Bitcoin exchange reserve has
changed over the years: The exchange reserve continues to decline
As you can see from the above graph, the BTC all exchanges reserve
has hit lows not seen since 2018. Usually, during periods of big
price swings, the indicator’s value shows a spike as investors look
to shift their positions in the market. Related Reading
| Bitcoin Holders Take Profits As Price Falls, Indicators
Remain Bullish? However, despite the recent dips, the metric
has only been trending downward. What’s the reason behind this?
Well, one possible scenario could be that there are now more
long-term holders in the market that are waiting for the price to
appreciate further before they make any moves. A downtrend in the
exchange reserve is often a bullish indicator as it shows buyers
are accumulating Bitcoin, while an uptrend could lead to crashes in
the crypto. Below is another chart that shows the BTC netflow
indicator over the last couple of days. Looks like the Bitcoin
netflow showed a huge negative spike yesterday The netflow
indicator measures the net number of coins exiting or entering
exchanges. As is apparent from the above graph, the metric had a
big negative spike yesterday, which implies a large amount of BTC
was pulled off exchanges. Related Reading | Did Turkey’s
President Say “We Are In A War Against Bitcoin”? An Investigation
BTC Price Yesterday, Bitcoin’s price crashed down to $40k after
peaking just below $49k a few days back. But the price has since
jumped back a bit as it floats around $43k at the time of writing.
The crypto is down 7% in the last 7 days, while over the past 30
days, the value is 11% less. Here is a chart showing the trend in
the price of the coin over the last five days: BTC's price crashes
down to $40k, but quickly recovers back up a little | Source:
BTCUSD on TradingView Featured image from Unsplash.com, charts from
TradingView.com, CryptoQuant
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