Exchange Reserve Surge
Data from CryptoQuant shows that over 14,000 BTC (worth $851.2 million) has been deposited into exchanges in the past four days. This surge in exchange reserves suggests that investors are preparing to sell their Bitcoin.
Selling Pressure
Typically, an increase in exchange reserves indicates increased selling pressure. Investors often use exchanges to sell their assets, so this movement could put downward pressure on the Bitcoin price.
Price Volatility
The influx of Bitcoin into exchanges could also trigger price volatility. Large movements of funds into trading platforms can lead to significant price fluctuations.
Current Price Impact
Despite the exchange reserve surge, the Bitcoin price has remained relatively stable in the past day, hovering around $60,700.
Potential Price Rebound
On-chain analytics platform Santiment believes that a price rebound is imminent for Bitcoin. They cite negative crowd sentiment and a low relative strength index (RSI) as indicators of a potential bounce.
