Bitcoin Exchange Reserve Observes Rapid Rise
As pointed out by an analyst in a CryptoQuant , a high number of coins have entered exchanges over the last day.The “exchange reserve” is an indicator that measures the total amount of Bitcoin currently present in wallets of all centralized exchanges.
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Looks like the value of the metric has jumped up recently | Source:As you can see in the above graph, the Bitcoin exchange reserve has observed a sharp increase in its value recently.
The chart also shows the curve for the “all exchanges netflow,” another metric which measures the net amount of coins entering or exiting exchanges.
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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. The fact that the Bitcoin exchange reserve doesn’t seem to have changed trend and is still rapidly rising after the crash may mean that the crypto’s price could see further decrease in its value in the near future.BTC Price
At the time of writing, Bitcoin’s price floats around $21.1k, down 30% in the last seven days. Over the past month, the crypto has lost 32% in value.
The below chart shows the trend in the price of the coin over the last five days.The price of BTC seems to have ben moving sideways since the crash | Source:Following the crash, Bitcoin touched as low as $20k, before rebounding back a little to the current levels. Currently, it’s unclear whether the carnage has ended, or if further decline is coming. But if the exchange reserve is anything to go by, then signs aren’t looking in the crypto’s favor.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com