Bitcoin
14,000 BTC transferred to exchanges in four days – Worrying trend for Bitcoin price? — TradingView News
Recent on-chain data shows that substantial amounts of Bitcoin have arrived on centralized exchanges in recent days. How could this impact the price of Bitcoin?
Will Bitcoin Price Face More Selling Pressure?
In a new post on Platform X, prominent cryptocurrency analyst Ali Martinez revealed that Bitcoin investors have been moving their assets to centralized exchanges in recent days. The relevant indicator here is CryptoQuant’s Exchange Reserve metric, which tracks the total amount of a specific cryptocurrency held across all exchanges.
It’s worth noting that the value of this metric rises when investors are making more deposits than withdrawals of a cryptocurrency (Bitcoin, in this scenario) on centralized exchanges. Meanwhile, when the value of the metric falls, it means that holders are moving their assets away from trading platforms.
According to data from CryotoQuant, more than 14,000 BTC (valued at approximately $851.2 million) have been sent to cryptocurrency exchanges in the last four days. As shown in the chart below, the exchange reserve metric is at its highest level in almost a month.
NewsBTC
Typically, an increase in the foreign exchange reserve indicates high selling pressure, as investors often use centralized exchanges to sell assets. Consequently, the movement of large quantities to trading platforms could exacerbate downward pressure on the price of Bitcoin.
Furthermore, the exodus of significant amounts to centralized exchanges could trigger price volatility for the leading cryptocurrency. This would imply a greater likelihood of large price movements in the future.
However, there has been no impact on Bitcoin’s price over the past day. At the time of writing, the price of the premier cryptocurrency is hovering around $60,700, reflecting an increase of just 0.3% over the past 24 hours.
Price recovery imminent for BTC: Santiment
Fortunately, not everything is gloomy for Bitcoin’s price at the moment. Prominent on-chain analytics platform Santiment has offered a positive outlook for the market leader’s price.
According to the blockchain firm, Bitcoin’s recovery from the dips of the past two weeks was short-lived. Santiment believes a price recovery is imminent for the leading cryptocurrency.
The rationale behind this analysis is based on two factors: the recent negative crowd sentiment and the low relative strength index (RSI). Santiment said in its post:
But notice the continued negative sentiment coming from the crowd, indicating that their patience is running out. This, coupled with a low RSI of just 36, are strong indications that a recovery is near.