What Sell Pressure? Bitcoin Exchange Reserves Hit 4-Year Low

Bitcoin has started a recent downtrend that is threatening its position above the coveted $40,000 level. This is presumed to be caused by major sell-offs in the market. However, exchange metrics continue to show that this is not entirely the case. Exchange balances have been plummeting for the past year pointing towards massive accumulation trends and this has come to a head after bitcoin exchange balances have touched a new 4-year low. Exchange Balances Plummet It is no secret that the bitcoin being left on centralized exchanges has been declining. However, the margin by which this has been on the decline is more important. Even during times when the price of bitcoin had been on a recovery trend and headed into a bull market, exchange balances continued to plummet. The result of this has been exchange balances hitting a new low, currently sitting at a four-year low. Related Reading | Why A “Boring” Bitcoin Could Be A Good Thing This comes from months of consistent outflows that have been the order of the day. Even when bitcoin had reclaimed its position above $40,000 on several occasions, exchange outflows continued to surpass inflows, leading to the decline in the balances. BTC trading south of $40,000 | Source: BTCUSD on TradingView.com One of the most prominent outflows was recorded on April 14th when more than 25K bitcoin valued at $1.9 billion left centralized exchanges in a single day. The decline to 4-year lo...