Bitcoin Bullish Signal: Exchange Reserve Loses Another 50k BTC Over Past Week

On-chain data shows the Bitcoin exchange reserve has lost another 50k BTC over the past week, a sign that could be bullish for the price of the crypto. Bitcoin Exchange Reserve Continues To Observe Further Decline In Recent Weeks As pointed out by an analyst in a CryptoQuant post, 50k BTC in net outflows has exited exchange wallets over the past week. The “all exchanges reserve” is an indicator that measures the total amount of Bitcoin stored in wallets of all centralized exchanges. When the value of this metric goes up, it means the supply on exchanges is rising as investors deposit a net amount of coins. Such a trend may be bearish for the price of the coin as holders usually transfer to exchanges for selling purposes. On the other hand, the reserve’s value decreasing implies that a net amount of Bitcoin is exiting exchange wallets at the moment. This kind of trend when sustained over a period can prove to be bullish for the coin’s price as it may be a sign that investors are accumulating. Related Reading | Current Stretch Of Bitcoin Fear Surpasses 2021 Selloff Now, here is a chart that shows the trend in the BTC exchange reserve over the past few months: Looks like the value of the indicator has sharply gone down recently | Source: CryptoQuant As you can see in the above graph, the Bitcoin exchange reserve has been going down over the last few months. In the past week alone, the metric has ...