Is It a Green Signal for BTC?

Bitcoin exchange reserve data showcases that it has been down by 0.98% in the last 7 days, showcasing the buyer’s activity in King Crypto.

Bitcoin price recently broke out above the 50 EMA level, demonstrating that buyers are back in the game. Meanwhile, the Bitcoin exchange reserve has decreased in the past seven days, which also shows the buying pressure in crypto. 

Is Exchange Reserve Decline a Good Sign?

According to data from Crypto Quant, the BTC exchange reserve has decreased, indicating higher bullishness in the cryptocurrency market. A decline in the exchange reserve suggests that market participants are more inclined to buy.

Source: CryptoQuant Exchange Reserve Data

Over the last 24 hours, the exchange reserve has decreased by 0.08%. It dropped by 0.98% in the past 7 days. Currently, the Bitcoin Exchange Reserve stands at 1,921,766.88. 

However, Bitcoin trading volumes have dropped by around 70% since the beginning of March. This decrease in volume is a significant sign of market indecision, with many traders sidelined due to the current market conditions.

Whale Activity in Bitcoin 

Meanwhile, the blockchain analytics firm Santiment demonstrated the recent whale activity in an X post. The number of whale wallets holding over 100 $BTC remains high at 11.79 million coins, but whale activity has reached its lowest point in 2024. Currently, there are 15,907 wallets with at least 100 coins. An increase in this number could signal a bullish trend.

The chart notes that there are 76 fewer 100+ BTC wallets compared to 2 months ago, which represents a -0.48% drop.

The main takeaway from the chart is that the number of Bitcoin transactions exceeding $100,000 in value has reached its lowest level since the final week of December 2023, with only 60,193 transactions meeting this criteria in the past week.

What Is the Next Target of Bitcoin (BTC)?

Bitcoin price recently broke out above the 50 EMA resistance by a strong Marubozu candle, flipping the bearish trend to bullish. If the price is sustained above the key moving averages, further upside moves could be seen in upcoming sessions.

At press, the Bitcoin support level is at $63,000, and the resistance level is at $70,000, which is also a psychological resistance level. If the price surpasses these levels, a new all-time high could be witnessed in the upcoming weeks.

Summary

Bitcoin exchange reserves have dropped, suggesting increased buyer activity and higher bullishness in the cryptocurrency market. However, Bitcoin trading volumes have decreased since March, signaling market indecision. 

Whale activity in Bitcoin has reached its lowest point in 2024, with fewer wallets holding over 100 BTC. The number of Bitcoin transactions exceeding $100,000 in value has also decreased.

Disclaimer

The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in crypto involves risk. Please assess your situation and risk tolerance before making any investment decisions.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.