Bitcoin (BTC) exchange reserves continue to plummet as analysts point to a shortage of sellers. After the March crash, stocks on the exchange plummeted from 2,950,000 BTC to 2,700,000 BTC.
In just seven months, the exchange fund showed a decline of 250,000 BTC, a decrease of 2.85 billion. There could be two main factors behind the extreme trend: a decline in sellers and low confidence in the exchange.
Bitcoin reserves on exchanges. Source: Glassnode
Is the number of bitcoin sellers coming down between the accumulation phase?
Analysts attributed the steady decline in bitcoin exchange reserves mainly to the overall shortage of sellers in the market.
Institutions are also acquiring more BTCs as retailers avoid selling BTCs at current prices. Simultaneous reduction in selling pressure and increased demand from buyers is an optimistic trend for Bitcoin.
A nickname trader known as “D Dagems” said the data showed that Bitcoin was potentially moving towards non-custodial wallets. If so, it indicates that investors are moving to keep their funds for the long term. He Said:
“More and more #Bitcoin is exiting exchanges and possibly shifting to non-custodial v .lets. This suggests that a little less liquidity and selling pressure is easing.
Michael Van de Pope, a full-time trader on the Amsterdam Stock Exchange, echoed this trend.
He stressed that the inflow of BTC from exchanges is increasing as cash reserves from institutions are flowing into Bitcoin. He Noticed:
“Honestly, more and more BTCs are moving from exchanges to cold storage. Large listed companies allocate cash reserves to BTC. Surprisingly bullish. ”
The confluence of stable retail outflows from Bitcoin and the constant demand of institutions stimulate common sense around BTC.
Dan Tap Tap Piro, co-founder of 10T Holdings, similarly said that the “shortage of Bitcoin” is possible due to growing institutional interest.
Other supply metrics indicate higher HODL activity
According to Glassnode, a large portion of the Bitcoin supply is stored in “accumulation addresses”. These addresses represent users who have never moved BTC from their wallet, possibly storing BTC for the long term.
When “HODILING” activity is high, which refers to holding on to BTC for a long time, it usually indicates the beginning of the accumulation phase. Glassnode Said:
“Bitcoin hoarding has been on a steady upward trend for months. 2.6 M $ BTC (14% of supply) is currently in the address of accumulation. Accumulation addresses are defined as addresses that have at least 2 incoming TXs and have not incurred BTC costs. “
The positive basic on-chain matrix complements the favorable technical structure of Bitcoin. BTC is above 11,400, despite various events that could apply selling pressure on BTC, including BTMX verification and OKX withdrawal suspension.
The Bitmax and OKX controversy also led to a sharp decline in exchange reserves, possibly an increase in traders. Beatmax quickly though Process withdrawal And while there was no outflow in OKX and wallets, regulatory uncertainty was enough to reduce the exchange reserves.
Beatmax BTC supply. Source: Sectometrics
In early October, technical analysts prepared a range of, 11,100 to 11 11,300 as a short-term resistance range. BTC has remained relatively stable above the above range, which is technically a positive sign for the pace of renewal.