Despite New ATH, Bitcoin Exchange Reserves Continue To Decline
October 21 2021 - 2:00PM
NEWSBTC
Despite the fact that Bitcoin has made a new ATH above $66,000, the
exchange reserves have continued their trend of decline. Bitcoin
All Exchanges Reserve Continues To Go Down As pointed out by a
CryptoQuant post, the Bitcoin all exchanges reserve continues to
show a downtrend despite the crypto making new all-time highs
(ATHs). The all exchanges reserve is a BTC indicator that tells us
the total amount of coins deposited on centralized exchange
wallets. When the value of the metric shows an increase, it means
investors are sending more of their Bitcoin to exchanges. This
could imply that there is a selling pressure in the market as
holders usually move their crypto to exchanges for withdrawing to
fiat, or for purchasing altcoins with them. Decreases in the
indicator, on the other hand, suggest the supply for BTC is
shortening as investors are taking their coins off exchanges. Such
a trend could mean there is a buying pressure in the market and may
prove to be bullish for the price. Here is a chart that shows the
trend in the Bitcoin all exchanges reserve indicator over the past
couple of weeks: Bitcoin reserves seem to be trending downward |
Source: CryptoQuant As you can see in the above graph, while the
price of BTC has shot up recently as the crypto makes new ATHs, the
indicator’s value has sharply fallen down. Related Reading
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To Early Investors What this implies is that many investors still
haven’t tried to realize their profits. They have rather withdrawn
their BTC and took it to personal wallets for hodling. Below is
another chart, this time for the Long-Term Holder SOPR indicator,
which shows the degree of realized profits by investors who have
owned their coins for more than 155 days. BTC SOPR has been minimal
recently | Source: CryptoQuant As you would expect based on the
reserves, the long-term holder SOPR has low values right now,
showing that long-term investors still haven’t moved to realize
their profits. Related Reading | Bitcoin Futures ETF Exceeds
Expectations, Trades $1 Billion On Day One Even though BTC has
already made new ATHs, it would seem holders are still expecting
the price to appreciate further before they begin to harvest their
gains. BTC Price At the time of writing, Bitcoin’s price floats
around $65.7k, up 14% in the last seven days. Over the past month,
the crypto has gained 51% in value. Here is a chart showing the
trend in the price of BTC over the last five days: Bitcoin's price
continues to make new ATHs as the price flies past the $65k mark |
Source: BTCUSD on TradingView Featured image from Unsplash.com,
charts from TradingView.com, CryptoQuant.com
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