News
14,000 BTC Transferred to Exchanges in Four Days: Worrying Trend for Bitcoin Price? — TradingView News
Recent on-chain data shows that significant amounts of Bitcoin have arrived on centralized exchanges in recent days. How could this impact the price of Bitcoin?
Will Bitcoin Price Face Further Selling Pressure?
In a new post on the X platform, prominent crypto 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 particular cryptocurrency held across all exchanges.
It is worth noting that the value of this metric increases when investors make more deposits than withdrawals of a cryptocurrency (Bitcoin, in this scenario) on centralized exchanges. Meanwhile, when the value of the metric decreases, it means that holders are moving their assets away from trading platforms.
According to CryotoQuant data, over 14,000 BTC (worth approximately $851.2 million) have been sent to cryptocurrency exchanges over the past four days. As shown in the chart below, the foreign exchange reserves metric is at its highest level in nearly a month.
BTC News
Typically, an increase in the foreign exchange reserve indicates high selling pressure, as investors often use centralized exchanges to sell assets. As a result, moving huge amounts to trading platforms could exacerbate downward pressure on Bitcoin’s price.
Additionally, the exodus of significant amounts to centralized exchanges could trigger price volatility for the leading cryptocurrency. This would imply a higher likelihood of large price movements in the future.
However, there was no impact on the price of Bitcoin in the last day. At the time of writing, the price of the leading cryptocurrency stands at around $60,700, reflecting an increase of 0.3% in the last 24 hours.
Upcoming price bounce for BTC: Santiment
Fortunately, it’s not all doom and gloom for the price of Bitcoin at the moment. Prominent on-chain analytics platform Santiment offered a positive outlook for the market leader’s price.
According to the blockchain firm, Bitcoin’s recovery after the declines of the last two weeks was short-lived. Santiment believes that a price rebound is imminent for the leading cryptocurrency.
The rationale behind this analysis is based on two factors; the recent negative public sentiment and the low Relative Strength Index (RSI). Santiment said in her post:
But note the continued negative sentiment pouring in from the crowd, indicating that their patience is wearing thin. This, coupled with a low RSI of just 36, are strong indications that a bounce is near.