On-chain data shows Bitcoin exchange reserves have sharply dropped recently, suggesting a possible return to bullish trend. Bitcoin Exchange Reserves Historical Data May Tell Current Trend Is Bullish As explained by an analyst in a CryptoQuant post, the Bitcoin exchange reserves seem to have sharply fallen in the past couple of weeks. The “all exchanges reserve” is a BTC indicator that shows the total amount of coins currently stored in exchange wallets. When the value of this indicator moves up, it means investors are depositing their Bitcoin to exchanges. Holders usually transfer coins to exchanges either for withdrawing to fiat or for purchasing altcoins with them. As such, this trend can be bearish for the price of the crypto. On the other hand, when the reserve moves down, it implies holders are withdrawing their coins at the moment. Such a trend, if sustained, can prove to be bullish for BTC as it may mean that investors are currently in a state of accumulation. Related Reading | Bitcoin Drops To $46k As $44.2 Million In BTC Gets Dumped Within 1 Min Now, here is a chart that shows the trend in the value of the Bitcoin exchange reserve over the past six months: BTC exchange reserves seem to be moving down since a while now | Source: CryptoQuant The Bitcoin exchange reserve has been trending down since May, which would suggest that the market is currently accumulating the crypto. As you can see in the...
