On-chain data shows Bitcoin exchange reserves have sharply increased in value, a sign that the selloff may not be over yet.<\/p>\n
Bitcoin Exchange Reserve Observes Rapid Rise<\/p>\n
As pointed out by an analyst in a CryptoQuant post, a high number of coins have entered exchanges over the last day.<\/p>\n
The \u201cexchange reserve\u201d is an indicator that measures the total amount of Bitcoin currently present in wallets of all centralized exchanges.<\/p>\n
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.<\/p>\n
As holders usually transfer to exchanges for selling purposes, such a trend could be bearish for the price of the crypto.<\/p>\n
Related Reading |\u00a0Panic Vs Pandemic: Crypto Market Is More Fearful Than On Black Thursday<\/p>\n
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\u2019s price.<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin exchange reserve over the past few months:<\/p>\n\n
Looks like the value of the metric has jumped up recently | Source: CryptoQuant<\/p>\n
As you can see in the above graph, the Bitcoin exchange reserve has observed a sharp increase in its value recently.<\/p>\n
The chart also shows the curve for the \u201call exchanges netflow,\u201d another metric which measures the net amount of coins entering or exiting exchanges.<\/p>\n
Related Reading |\u00a0Bitcoin Faces a New Downtrend Of 28.82%, Why Someone Still Makes More Than 1000% ROI<\/p>\n
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.<\/p>\n
The fact that the Bitcoin exchange reserve doesn\u2019t seem to have changed trend and is still rapidly rising after the crash may mean that the crypto\u2019s price could see further decrease in its value in the near future.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $21.1k, down 30% in the last seven days. Over the past month, the crypto has lost 32% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n\n
The price of BTC seems to have ben moving sideways since the crash | Source: BTCUSD on TradingView<\/p>\n
Following the crash, Bitcoin touched as low as $20k, before rebounding back a little to the current levels. Currently, it\u2019s unclear whether the carnage has ended, or if further decline is coming.<\/p>\n
But if the exchange reserve is anything to go by, then signs aren\u2019t looking in the crypto\u2019s favor.<\/p>\n
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
On-chain data shows Bitcoin exchange reserves have sharply increased in value, a sign that the selloff may not be over yet.<\/p>\n
Bitcoin Exchange Reserve Observes Rapid Rise<\/p>\n
As pointed out by an analyst in a CryptoQuant post, a high number of coins have entered exchanges over the last day.<\/p>\n
The \u201cexchange reserve\u201d is an indicator that measures the total amount of Bitcoin currently present in wallets of all centralized exchanges.<\/p>\n
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.<\/p>\n
As holders usually transfer to exchanges for selling purposes, such a trend could be bearish for the price of the crypto.<\/p>\n
Related Reading |\u00a0Panic Vs Pandemic: Crypto Market Is More Fearful Than On Black Thursday<\/p>\n
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\u2019s price.<\/p>\n
Now, here is a chart that shows the trend in the Bitcoin exchange reserve over the past few months:<\/p>\n
Looks like the value of the metric has jumped up recently | Source: CryptoQuant<\/p>\n
As you can see in the above graph, the Bitcoin exchange reserve has observed a sharp increase in its value recently.<\/p>\n
The chart also shows the curve for the \u201call exchanges netflow,\u201d another metric which measures the net amount of coins entering or exiting exchanges.<\/p>\n
Related Reading |\u00a0Bitcoin Faces a New Downtrend Of 28.82%, Why Someone Still Makes More Than 1000% ROI<\/p>\n
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.<\/p>\n
The fact that the Bitcoin exchange reserve doesn\u2019t seem to have changed trend and is still rapidly rising after the crash may mean that the crypto\u2019s price could see further decrease in its value in the near future.<\/p>\n
BTC Price<\/p>\n
At the time of writing, Bitcoin\u2019s price floats around $21.1k, down 30% in the last seven days. Over the past month, the crypto has lost 32% in value.<\/p>\n
The below chart shows the trend in the price of the coin over the last five days.<\/p>\n
The price of BTC seems to have ben moving sideways since the crash | Source: BTCUSD on TradingView<\/p>\n
Following the crash, Bitcoin touched as low as $20k, before rebounding back a little to the current levels. Currently, it\u2019s unclear whether the carnage has ended, or if further decline is coming.<\/p>\n
But if the exchange reserve is anything to go by, then signs aren\u2019t looking in the crypto\u2019s favor.<\/p>\n
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-1366","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/1366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=1366"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/1366\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=1366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=1366"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=1366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}