On-chain data shows Bitcoin exchange reserves have now reached new 4-year lows, a sign that could prove to be bullish for the crypto’s price.
Bitcoin Exchange Reserve Has Sunk Down Further Recently
As pointed out by an analyst in a CryptoQuant post, the BTC exchange reserve has been going down, suggesting buying has been going in the market.
The “all exchanges reserve” is an indicator that measures the total amount of Bitcoin currently stored in wallets of all centralized exchanges.
When the value of this metric goes up, it means investors are depositing a net amount of coins to exchanges right now.
Such a trend, when prolonged, can be bearish for the price of the crypto as holders usually transfer their crypto to exchanges for selling purposes.
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On the other hand, a downtrend in the reserve suggests investors are withdrawing their BTC from exchanges at the moment. This kind of ..
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