Bitcoin Bearish Signal: Exchange Reserves Show Sharp Increase

Bitcoin exchange reserves have shown a sudden sharp spike recently, despite being in a declining trend for months. After Months Of Downtrend, Bitcoin Exchange Reserves Shoot Up As pointed out by a CryptoQuant post, on-chain data shows that BTC exchange reserves have spiked up in the past couple of weeks. The “all exchanges reserve” is an indicator that measures the total amount of Bitcoin stored in wallets of all exchanges at a particular point in time. If the value of the metric goes down, it means investors are taking their coins off exchanges. Holders may be withdrawing their BTC to accumulate them as they might believe that the price would appreciate further. As a result, this trend could be bullish for the crypto. On the other hand, if the indicator increases in value, it implies holders are transferring their Bitcoin to exchanges, possibly for withdrawing to fiat or for purchasing altcoins. Such a trend can prove to be bearish for the coin. Related Reading | Bitcoin Open Interest Remains Elevated Post Dramatic Dip Now, here is a chart that shows the trend in the BTC exchange reserves over the past few months: The indicator seems to have spiked up recently | Source: CryptoQuant As you can see in the above graph, the Bitcoin exchange reserves have been falling down for a while now. However, in the past couple of days, the indicator’s value has shown a sudden increase. This rise in the reserve am...