Bitcoin exchange reserves are trending down, are the whales starting to pile up?

The bitcoin reserve for all exchanges appears to be on a gradual downtrend, a sign that accumulation is ongoing.

The Bitcoin All Exchanges Reserve is declining

As mentioned in a Crypto Quant post, the BTC reserve for all exchanges looks like it has been going down in the past few weeks.

The bitcoin reserve for all exchanges is a useful indicator that shows us the amount of BTC that is held in the wallets of all exchanges.

If this amount goes up, it means that more investors are putting their BTC in exchange wallets for sale or exchanging them for altcoins.

Related reading | Production Costs: Why $ 14,000 Is Likely The Absolute Bottom For Bitcoin

On the other hand, if the reserve for all exchanges goes down, it shows buyers are sending their BTC to personal wallets, possibly for collection.

This is what the reserve chart of the BTC exchanges looked like over the past three months:

All BTC exchange reserves seem to be falling | Source: CryptoQuant

As the graph above shows, whales seem to be slowly amassing Bitcoin amid the crashed price.

Another notable feature on the graph is that the 50% drop in May was accompanied by a sharp increase in the reserve on all exchanges. This makes sense as investors selling their BTC in hordes would push the price down.

Now here is another diagram showing the outflow from a popular bitcoin exchange, Coinbase:

Bitcoin Coinbase outflow

Coinbase is currently showing an increase in outflow | Source: CryptoQuant

The red lines show the amount of Bitcoin moving out of Coinbase. It seems that a lot is being pulled from the coin at the moment.

One interesting feature on this chart is that whenever the price fell in the $ 30,000 to $ 33,000 range, the red lines would rise pretty high.

Related reading | Bloomberg analyst provides blueprint for Bitcoin path to $ 100,000

This is likely because investors pump up the crypto whenever it shows signs of falling so that the range can be maintained.

Bitcoin price

At the time of writing, the price of BTC is around $ 33,000, down 3% over the past 7 days. Here is a graph showing the trend in value:

Bitcoin price chart

Bitcoin currently seems to have a slight upward trend | Source: BTCUSD on TradingView

BTC has been acting like an area-bound market for some time, and as the reserve chart of all exchanges shows, investors have already started moving back into the $ 33,000-35,000 range.

As long as this range is maintained, a bull run could occur. Bitcoin is approaching an intersection with a macro support curve, according to an analyst. However, if the $ 30,000 to $ 33,000 support is lost and the $ 30,000 line becomes a resistance, a bear market could be imminent.

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