On-chain data shows that bitcoin whales may have been quietly piling into recent price lows as exchanges have recorded large withdrawals.
bitcoin Exchange Reserve Has Observed a Decline Recently
As analyst Ali Martínez pointed out in a x.com/ali_charts/status/1800815785369354354″ target=”_blank” rel=”noopener nofollow”>mail On x, exchanges have seen significant withdrawals in recent days. The on-chain metric of interest here is the “Exchange Reserve,” which tracks the total amount of bitcoin currently held in the wallets of all centralized exchanges.
When the value of this metric increases, it means that these platforms are receiving a net amount of deposits right now. Since one of the main reasons investors would transfer their coins to exchanges is for selling-related purposes, this type of trend can potentially be bearish for the price of the asset.
On the other hand, the indicator seeing a decline implies that users are currently withdrawing a net amount of tokens from these central entities. Holders can take coins into self-custody when they wish to hold them long-term, so such a trend could prove bullish for the cryptocurrency.
Now, here is a chart showing the trend of the bitcoin Exchange Reserve over the past few months:
<img decoding="async" class="alignnone" src="https://technicalterrence.com/wp-content/uploads/2024/06/Bitcoin-whales-buy-amid-market-panic-950-million-leaves-exchanges.png" alt="bitcoin Exchange Reserve” width=”4000″ height=”2250″/>
Looks like the value of the metric has been riding a downtrend in recent weeks | Source: x.com/ali_charts/status/1800815785369354354/photo/1" target="_blank" rel="noopener nofollow">@ali_charts on x
As shown in the chart above, the bitcoin exchange reserve has recently decreased. More specifically, a net amount of 14,140 btc, worth around $954 million at the current exchange rate, has left these platforms over the last 48 hours or so.
In this period, bitcoin has been trading at lows following its crash, so it is possible that these pullbacks indicate that some new accumulation has occurred at these potentially profitable prices.
Given the massive scale, of course, whale entities would have had to be involved here. These huge investors participating in potential purchases at these levels and taking the coins into self-custody can naturally be a positive sign for the asset.
It would appear that the cryptocurrency may already be seeing the bullish benefit of this accumulation, as its price has now seen a rebound above the $69,000 level.
You can also see from the chart that these recent currency outflows are not exactly something new in the market, as in fact the currency reserve has been steadily decreasing over the last month.
As such, it appears that there has been a strong appetite to withdraw coins from these platforms in the bitcoin sector recently.
btc Price
While bitcoin may have enjoyed a bounce from its recent lows following the whale exchange exits, the asset's price at $69,300 is still well within the range that the coin has been stuck moving within for so long.
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The price of the coin appears to have seen a rebound from its recent lows | Source: BTCUSD on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
