Bitcoin’s Exchange Reserves Plunge—Are We On The Brink Of A Rebound?
Bitcoin is undergoing a challenging period, with its price still below $100,000 after a sharp drop earlier this week. Today, Bitcoin hovers above $98,000, marking a record record of nearly 10% of the all-time high above $109,000 recorded last month.
Interestingly, the price of BTC has slowed down Trading reserves Facing the same fate, data shows that the indicator continues to decline.
Does this hint at Bitcoin’s offensive rebound?
ShayanBTC, a contributor to the fast crypto platform, notably pointing out this trend postal The title is “Bitcoin Exchange Reserves: Is the supply shock driving the next rally.” According to Shayang, such reserves may be beneficial to BTC in the short term.
Shayan revealed in the post that Exchange Relevers (the amount of Bitcoin held on the trading platform) has steadily declined. This trend usually marks The accumulation stage of investorsas more and more market participants withdraw their BTC from exchanges to ensure long-term holdings.
This reduced circular supply will create a “supply shock” that could drive higher prices in the coming weeks. “As shown in the picture, Bitcoin’s Exchange reserves “It has been in a positive decline, which indicates the accumulation phase of investors,” Shayan explained. The analysts added:
Given that exchange reserves are a supply-side indicator, this continued decline could lead to further price appreciation in the coming weeks.
Bitcoin exchange reserves plummet
“As shown in the figure, Bitcoin’s exchange reserves have been actively declining, which indicates the accumulation phase of investors.” – By @shayanbtc7
Full post
https://t.co/xxycdsg3vw pic.twitter.com/ntvy7audpd
– cryptoquant.com (@cryptoquant_com) February 6, 2025
Coinbase Premium arrives in Zone 0
In addition to exchange reserves, another thing worth mentioning is that the entire picture of the possible BTC trajectory to be obtained in the short term is the Coinbase Premium index. The index measures the price difference between bitcoins on Coinbase, which is often the preferred platform and other exchanges for institutional investors.
Positive premiums can indicate strong buying pressure on Coinbase, signaling Institutional needs. Latest data show that in recent days, the Coinbase Premium index has disrupted the critical “0” resistance level in large batches, which traders closely monitor.
Tradoasis, another crypto analyst, Highlight This breakthrough zone can also serve as a support/resistance level, making it a key point.
Continuous positive premiums may indicate continued institutional accumulation, which may Increase Bitcoin price recovery. Instead, failure to maintain this level may indicate lingering bearish sentiment or potential for further declines.
Feature images created with DALL-E, TradingView’s chart
