The latest Bitcoin exchange reserve declines could have left BTC investors confused. Furthermore, CryptoQuant analyst Maartunn observed that more than 60 BTCs left the reserves. He stated that all these exited within three days.
Furthermore, the analyst added that it represented the latest BTC amount recorded in several months. Moreover, CryptoQuant confirmed that Bitcoin reserves declined from September 29’s 2,305,182. The substantial drop pinned the metric at 2,266,685 during this publication.
Meanwhile, the outflows might lead to a colossal sell-off. Nevertheless, Maartunn presented other opinions. He claimed that scenarios like these lead to increased market demand for the leading crypto. Incidentally, his assertion might be valid.
Considering the low exchange supply, the BTC market could be pressuring investors to narrow their holdings. Despite the decision to HODL, there aren’t clear signs that Bitcoin almost bottomed. Though the prevailing market conditions might not be lucrative, Maartunn’s claim of heightened demand has solid ground.
Amidst Hopelessness and Possibilities
Glassnode revealed that addresses with a 0.01 BTC balance touched another ATH. The on-chain monitoring site observed that Bitcoin surpassed its previous all-time high on October 1. Also, it confirmed that the prevailing ATH stood at the 10,758,931 highs.
Subsequently, other facets didn’t match demand. Also, Glassnode suggested that the transaction count plummeted to $241,812, a notable fall from the 286,503 high. That showed that Bitcoin’s exchange withdrawals and deposits may not be at the reported highs.
Moreover, the transaction count might have to surge too. That would mean a massive interest within the marketplace. That would see investors stranded in confirming more declines or a bottom.
Here, it’s noteworthy that another CryptoQuant expert, MAC_D, believed that the ELR (Estimated Level Ratio) could have affirmed a Bitcoin demand surge. Nevertheless, he warned about the Estimated Level Ratio soaring beyond its press time mark.
Further increases might welcome price inconsistencies since the ELR impacts Open interest and volatility. MAC_D added that balancing exchange reserve outflows and Open Interest rates would be lucrative for the leading crypto.
While publishing this blog, Bitcoin traded at $19,352. The leading crypto had its daily trading volume slumping by 56%. With these findings, investors expecting upsides past $20K could have to wait longer.
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