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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Exchange Reserves Make A Downtrend, Are Whales Starting To Accumulate?

Keshav Verma
Keshav Verma
1 year ago
3 mins read

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Bitcoin all exchanges reserve seems to be making a gradual downtrend, a sign that accumulation has been going on.

The Bitcoin All Exchanges Reserve Goes Down

As pointed out by a Crypto Quant post, the BTC all exchanges reserve looks like it has gone down over the past couple of weeks.

The Bitcoin all exchanges reserve is a useful indicator that shows us the amount of BTC held in wallets of all exchanges.

When this quantity goes up, it means more investors are putting their BTC into exchange wallets for selling purposes, or exchanging it for altcoins.

Related Reading | Production Cost: Why $14K Is Likely The Absolute Floor For Bitcoin

On the other hand, when the all exchanges reserve goes down, it shows buyers are sending their BTC to personal wallets, possibly to accumulate.

Here is how the BTC all exchanges reserve chart has looked like over the past three months:

Bitcoin Exchange Reserve

BTC all exchanges reserve seems to going down | Source: CryptoQuant

As the above chart shows, it seems like whales are slowly starting to accumulate Bitcoin amidst the crashed price.

Another notable feature in the graph is that the 50% crash in May was accompanied by  a sharp increase in the all exchanges reserve. This makes sense as investors selling off their BTC in hordes would strike the price down.

Now, here is another chart that shows the outflow of a popular Bitcoin exchange, Coinbase:

Bitcoin Coinbase Outflow

Coinbase shows a surge of outflow right now | Source: CryptoQuant

The red lines show the amount of Bitcoin moving out of Coinbase. It seems that a lot of the coin is being withdrawn at the moment.

An interesting feature in this chart is that whenever the price has dropped in the $30k to $33k range, the red lines have spiked quite high.

Related Reading | Bloomberg Analyst Provides Blueprint Of Bitcoin Path To $100,000

This is probably because investors pump up the crypto whenever it shows signs of dropping so that the range can be maintained.

Bitcoin Price

At the time of writing, BTC’s price is going around $33k, down 3% in the past 7 days. Here is a chart showing the trend in its value:

Bitcoin Price Chart

Bitcoin seems to on a slight upwards trend right now | Source: BTCUSD on TradingView

BTC has been behaving as a range bound market for a while now, and as the all exchanges reserve chart shows, investors have already started pumping to go back to the $33k to $35k range.

As long as this range is maintained, a bull run could happen. According to an analyst, Bitcoin is coming closer to an intersection with a macro support curve. However, if the $30k to $33k support is lost, and the $30k line becomes resistance, a bear market could be ahead.

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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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