The data in the chain shows that the Bitcoin Exchange reserve for the Binance platform has recently collapsed, a signal that could be optimistic for the price of BTC.
Bitcoin Binance Exchange reserve has crashed recently
As an analyst pointed out in a fast cryptocant mailThe Bitcoin exchange reserve for Binance has seen a great decrease since mid -April. The “exchange reserve” here refers to an indicator that monitors the total amount of BTC that is in the wallets of a given centralized exchange.
When the value of this metric increases, it means that investors deposit a net number of asset tokens on the platform. As one of the main reasons why holders transfer their currencies to exchanges is for sale related to sale, this type of trend can have a bearish effect on the price of cryptocurrency.
On the other hand, the indicator that observes a decrease suggests that the outputs are overwhelming the entries and a net amount of the asset is leaving the exchange. Such a trend can be a sign that investors are accumulating, which can naturally be optimistic for BTC.
Now, here is the picture that shows the trend in the Bitcoin exchange reserve for Cryptomonetas Exchange Binance in recent years:
Looks like the value of the metric has plummeted in recent days | Source: CryptoQuant
As shown in the previous graph, the Bitcoin Binance Exchange reserve has been following a steep trajectory down since mid -April, which implies that investors have been in net withdrawal mode.
In total, the platform has seen the departure of around 51,000 BTC ($ 4.8 billion) during this period. Taking into account the large amount involved, it is likely that holders the size of a whale are behind the movements.
These last large exchanges of the exchange have accompanied a recovery rally in the price of BTC. From the table, it is visible that a similar trend has also been seen in the last two months of 2024.
At that time, Bitcoin Bull’s career hit a higher part of the same time as the lower part of the metric. Given this trend, it is possible that the rally in the price of the asset can also continue whenever the current trend of a decrease in the exchange reserve continues by Binance.
That said, in the current market, exchanges are no longer as relevant as they used to be, due to the appearance of other link doors such as the funds quoted in exchange (ETF). Therefore, although exchange retreats can still be a bullish signal, where BTC would be directed below, it is also reduced to how the other parts of the sector are seen.
BTC price
Bitcoin did the recovery beyond the level of $ 97,000 only a few days ago, but it seems that the currency has faced a setback since then, since it has decreased to $ 94,000 to start the new week.
The price of the coin appears to have erased some of its recent recovery | Source: BTCUSDT on TradingView
Outstanding image of Dall-E, Cryptoquant.com, TrainingView.com graphics
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