Bitcoin Exchange Reserve Spikes Up, Selloff Not Over Yet?
16 Junio 2022 - 2:00PM
NEWSBTC
On-chain data shows Bitcoin exchange reserves have sharply
increased in value, a sign that the selloff may not be over yet.
Bitcoin Exchange Reserve Observes Rapid Rise As pointed out by an
analyst in a CryptoQuant post, a high number of coins have entered
exchanges over the last day. The “exchange reserve” is an indicator
that measures the total amount of Bitcoin currently present in
wallets of all centralized exchanges. When the value of this metric
goes up, it means the supply on exchanges is going up as investors
are depositing a net number of coins. As holders usually transfer
to exchanges for selling purposes, such a trend could be bearish
for the price of the crypto. Related Reading | Panic Vs
Pandemic: Crypto Market Is More Fearful Than On Black Thursday On
the other hand, a declining value of the reserve suggests investors
are withdrawing their coins at the moment. This kind of trend, when
prolonged, can be a sign that holders are accumulating, which could
prove to be bullish for the coin’s price. Now, here is a chart that
shows the trend in the Bitcoin exchange reserve over the past few
months: Looks like the value of the metric has jumped up recently |
Source: CryptoQuant As you can see in the above graph, the Bitcoin
exchange reserve has observed a sharp increase in its value
recently. The chart also shows the curve for the “all exchanges
netflow,” another metric which measures the net amount of coins
entering or exiting exchanges. Related Reading | Bitcoin Faces
a New Downtrend Of 28.82%, Why Someone Still Makes More Than 1000%
ROI Basically, this metric tells us about how much the reserve is
increasing or decreasing right now. As expected, its value also
shot up over the last few days. The fact that the Bitcoin exchange
reserve doesn’t seem to have changed trend and is still rapidly
rising after the crash may mean that the crypto’s price could see
further decrease in its value in the near future. BTC Price At the
time of writing, Bitcoin’s price floats around $21.1k, down 30% in
the last seven days. Over the past month, the crypto has lost 32%
in value. The below chart shows the trend in the price of the coin
over the last five days. The price of BTC seems to have ben moving
sideways since the crash | Source: BTCUSD on TradingView Following
the crash, Bitcoin touched as low as $20k, before rebounding back a
little to the current levels. Currently, it’s unclear whether the
carnage has ended, or if further decline is coming. But if the
exchange reserve is anything to go by, then signs aren’t looking in
the crypto’s favor. Featured image from Unsplash.com, charts from
TradingView.com, CryptoQuant.com
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