Bitcoin Exchange Reserves Drop to New Low Hinting at Possible $60,000 Retest
The analyst also noted that BTC is moving to cold wallet storage, confirming investors’ interest in holding BTC long-term. These investors believe in Bitcoin’s price potential and hope for a possible rally ahead.
Historical data shows that the declining Bitcoin volume of exchanges signals a possible rally in Q4 2024. Gaah believes an increase in long-term BTC holders will improve market stability, resulting in a solid market structure.
Long-term holding will also reduce the rate of panic sales; when there is less BTC on exchanges, there will be less liquidity for immediate sales.
Trader MartyParty commented on the decline in exchange Bitcoin reserves, noting that Coinbase had under 1 million in its stock.
Also, Binance is down to 44,100 BTC despite transferring 30,000 Bitcoin from its cold storage to support exchange liquidity. MartyParty believes that something is happening, and it began on August 4.
Similarly, the analyst Bitcoin for Freedom revealed that 14,600 BTC moved from the Coinbase exchange on August 29. Over the past week, 56,000 BTC has moved from crypto exchanges, representing over four months of mined supply. The analyst believes supply shock will come soon since supply is currently unsustainable.
Meanwhile, the realized capitalization of long-term BTC holders exceeded $10 billion this week. So, long-term holders still maintain their Bitcoin supply despite the price dip in the past week.
