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Bitcoin Bearish Signal: Exchange Reserves Show Sharp Increase

by NEWSBTCDecember 2, 2021

Bitcoin exchange reserves have shown a sudden sharp spike recently, despite being in a declining trend for months.

After Months Of Downtrend, Bitcoin Exchange Reserves Shoot Up

As pointed out by a CryptoQuant post, on-chain data shows that BTC exchange reserves have spiked up in the past couple of weeks.

The “all exchanges reserve” is an indicator that measures the total amount of Bitcoin stored in wallets of all exchanges at a particular point in time.

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If the value of the metric goes down, it means investors are taking their coins off exchanges. Holders may be withdrawing their BTC to accumulate them as they might believe that the price would appreciate further. As a result, this trend could be bullish for the crypto.

On the other hand, if the indicator increases in value, it implies holders are transferring their Bitcoin to exchanges, possibly for withdrawing to fiat or for purchasing altcoins. Such a trend can prove to be bearish for the coin.

Related Reading | Bitcoin Open Interest Remains Elevated Post Dramatic Dip

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Now, here is a chart that shows the trend in the BTC exchange reserves over the past few months:

The indicator seems to have spiked up recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin exchange reserves have been falling down for a while now. However, in the past couple of days, the indicator’s value has shown a sudden increase.

This rise in the reserve amounts to around 39k BTC being deposited to exchanges between yesterday and today alone.

Related Reading | The Bitcoin Saga: A Look At BTC’s History Of Up’s And Down’s

Such sharp trend is usually an indication of whale activity. The price of Bitcoin has struggled recently so it’s possible some institutional investors could be preparing to pull out from the market.

If it’s indeed a sign of whale dumping, then the outlook of the crypto’s price could be bearish at least in the near future.

BTC Price

At the time of writing, Bitcoin’s price floats around $56.4k, down 2% in the last seven days. Over the past month, the crypto has lost 8% in value.

The below chart shows the trend in the price of the coin over the last five days.

BTC's price has mostly consolidated in the past few days | Source: BTCUSD on TradingView

Over a week ago, Bitcoin had a crash triggered by fud from the Omicron COVID variant. The coin’s price dropped to as low as $53k, but a few days ago the coin recovered its losses.

However, since then, the crypto has mostly trended sideways. It’s unclear at the moment which direction the coin might break out of this consolidation, but if the exchange reserve is anything to go by, BTC might face bearish trend soon.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Bearish Signals Go Off Despite Recovery Above $44k, Dead Cat’s Bounce?

by NEWSBTCSeptember 23, 2021

Bitcoin observes a few different bearish signals going off despite strong recovery above $44k, could it be a dead cat’s bounce?

On-Chain Data Shows Bitcoin Miners Have Started Selling, Funding Rates Have Turned Negative

As explained by a CryptoQuant post, a bunch of bearish Bitcoin signals have gone off despite some fresh movement up.

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First, the miners reserve has started to decline. This indicator shows the total number of coins that miners are holding in their wallets.

A downtrend in the metric’s value suggests miners have started sending their Bitcoin to exchanges for selling purposes.

Second is the Long-Term Holder SOPR (LTHSOPR) that shows the degree of realized profits and loss for those coins that haven’t moved on the chain since at least 155 days (which means these coins belong to long-term holders).

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Related Reading | Will Fear And Greed Keep Bitcoin Buyers From The Halloween Effect?

This metric has also been showing low values, implying these long-term holders are more likely to sell their coins right now.

Here is a chart showing the trend in both these indicators for Bitcoin:

The BTC miners reserve and the LTH SOPR | Source: CryptoQuant

Next is the Bitcoin exchange reserve, an indicator that measures the total number of coins present on wallets of all centralized exchanges.

The below chart shows how the reserve’s value has changed recently:

The indicator seems to showing some uptrend | Source: CryptoQuant

As the graph shows, the Bitcoin exchange reserve has started trending up after a long period of constant decline. When the metric’s value goes up, it means investors are starting to send their coins to exchanges for withdrawing to fiat or purchasing altcoins.

Finally, there is the funding rate, which highlights whether investors are finding long positions better or short ones.

funding rates look to be moving negative again | Source: CryptoQuant

As the above chart shows, the BTC funding rates have dipped below zero, signifying that short positions are more hot right now.

Related Reading | Mid-Cap Altcoins Hold Onto Highs Better Than Bitcoin And Ethereum

What Do These Indicators Mean For BTC’s Price?

All of these signals show a bearish outcome in the short term at least. However, the price has started moving up for now nonetheless.

It’s possible this recovery above $44k is just a dead cat’s jump, and that the price would move down soon as these indicators suggest, but there is still some chance this recovery holds.

At the time of writing, Bitcoin’s price floats around $44k, down 7% in the last 7 days. The below chart shows the trend in the price of the coin over the last five days.

BTC's price has started moving up after making a touch of $39.6k | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Tagged : #BTC / All News / Analysis / Bitcoin / Bitcoin Exchange Reserve / Bitcoin Miners Reserve / BTCUSD

Despite Dips, Bitcoin Exchange Reserves Reach Lowest Values Since 2018

by NEWSBTCSeptember 21, 2021

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.

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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:

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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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Tagged : #BTC / All / All News / Bitcoin / Bitcoin Exchange Reserve / BTCUSD

Bitcoin Exchange Reserves Lowest In 3 Years, What Does It Mean For The Price?

by NEWSBTCSeptember 13, 2021

On-chain data shows Bitcoin exchange reserves have hit the lowest value in 3 years, here’s what it might mean for BTC’s price.

Bitcoin Exchange Reserves Lowest In 3 Years As Negative Netflows Continue

As pointed out by a CryptoQuant post, exchange reserves have been continuing their downtrend, and have now reached lows not seen since 3 years ago.

The all exchanges reserve is an indicator that shows the total amount of Bitcoin held in wallets of all centralized exchanges.

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An increase in the metric’s value suggests more investors are depositing their coins for withdrawing to fiat or altcoin purchasing. On the other hand, a decrease means more buyers are moving their BTC to personal wallets for hodling or OTC deals.

Here is the latest chart for the Bitcoin all exchanges reserve:

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The BTC all exchanges reserve plunges down

As the above graph shows, the value of the indicator has sharply gone down recently. The current level of the metric is the lowest it has been in the last three years.

As already mentioned before, a downtrend like this one means investors are withdrawing their coins from exchanges possibly to hodl or sell through OTC deals.

Related Reading | Indicators Show Bitcoin Might Be Gearing Up For One Last Push Up

Such values are typically bullish in the long-term as they may mean that there are more long-term holders in the market who are hodling out of exchanges.

There is another relevant indicator here, called the Bitcoin netflow, which shows the net amount of BTC entering or exiting exchanges.

A positive spike in the chart for the exchange netflows means exchanges are observing more inflows compared to the outflows. A negative value implies just the opposite.

Big spikes or a prolonged period of smaller spikes in one direction can affect the value of the exchange reserves. Naturally, positive values can increase the reserve while negative ones can decrease it.

Related Reading | Ukraine Adopts New Law To Legalize Bitcoin And Other Cryptocurrencies

The below chart shows the current trend for the exchange netflows:

The BTC netflows show big negative spikes

As expected, the netflows have been negative recently, leading to the low values of the Bitcoin exchange reserves.

What Could It Mean for BTC’s Price?

As mentioned earlier, a downtrend in the exchange reserves can be bullish for the price in the long-term as it may imply a greater amount of long-term holdings. This has also been usually true historically, but there can be certain exceptions.

However, looking at the current Bitcoin price movement, it looks like selling has been going on. But as the exchange reserves haven’t shot up (unlike the crash from the May ATH), sales are being done likely through OTC deals.

Now, depending on if most of the outflows are being done to sell through OTC deals, a bearish picture can be there instead.

BTC's price continues to decline | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant

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Tagged : #BTC / All News / Analysis / Bitcoin / Bitcoin Exchange Reserve / BTCUSD

Bitcoin Bullish Signal: BTC Exchange Reserve Plummets

by NEWSBTCJuly 28, 2021

Bitcoin exchange reserve has fallen off a cliff, on-chain analysis shows. This behavior is usually a bullish indicator for the BTC market.

Bitcoin All Exchanges Reserve Is Down

As pointed out by a CryptoQuant post, the BTC all exchanges reserve indicator has surged downhill over the past couple of days.

The Bitcoin all exchanges reserve is an indicator that shows the amount of BTC stored in wallets of all exchanges. When the metric’s value goes up, it means more investors are sending their crypto to exchanges.

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More BTC in exchanges implies a selling pressure. On the other hand, when its value goes down, it means investors are sending their coins from exchange wallets to personal ones.

Related Reading | Bitcoin To Reach New All-Time Highs, Market Strategist

Here is a chart showing the trend in the value of the BTC all exchanges reserve over the last two months:

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The BTC all exchanges reserve seems to have steeply declined | Source: CryptoQuant

As the above graph shows, the metric has fallen down with quite the steep slope. Just over the past two days, the indicator has dropped more than 100K Bitcoin in value!

Since the value of the indicator going down means more BTC moving out of exchanges, it might mean that there is a buying pressure in the market. The price should be affected positively by this.

Related Reading | Survey Says! Institutional Investors Are Still Bullish On Bitcoin

A look at outflow charts of popular exchanges shows massive movement. Coinbase Pro saw 30k BTC exiting the platform on Wednesday, while Binance, the largest exchange by trading volume, saw around 29k BTC moving out of its wallets.

A couple of days back, Binance observed huge netflows. The price moved positively afterwards so that it’s possible that the all exchanges reserve plummeting will make the price go up this time too.

Bitcoin Price

At the time of writing, Bitcoin’s price is floating around $39.8k, up 24% in the last 7 days. Over the last month, the crypto has gained almost 15% in value.

Here is a chart that shows the trend in the price of BTC over the last 3 months:

BTC catches a sharp upwards trend | Source: BTCUSD on TradingView

After struggling in a range bound market for quite the while, Bitcoin has finally gained some of the volatility back. The rapid price swing of $34.5k to $39.5k was accompanied by the biggest short squeeze in the history of the coin as short sellers hurried to cut their loses.

The crypto is now testing the $40k resistance level, and if it can keep the rally up and push through, it’s likely that the coin will reach the $45k mark. However, if the level can’t be surpassed, BTC could fall back to a range bound market.

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Tagged : #BTC / All News / Binance / Bitcoin / Bitcoin Exchange Reserve / BTCUSD