Bitcoin exchange reserves drop to 2020 lows: What it means for BTC

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Bitcoin exchange reserves drop to 2020 lows: What it means for BTC
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As the Bitcoin price teeters on uncertainty, a significant drop in exchange reserves hints at a brewing scarcity.

exchange reserve has recently fallen to its lowest level in years, a significant development that comes at a time when BTC’s price is struggling to gain upward momentum.

When reserves are high, it suggests an increased supply on exchanges, which can lead to heightened selling pressure and potentially lower prices. Notably, the chart highlights sharp drops in exchange reserves around late 2022 and mid-2023, coinciding with Bitcoin’s price climbing. The MACD histogram indicated diminishing bearish momentum, but has not yet strengthened enough to signal a bullish reversal.Market participants were moving their Bitcoin off exchanges, potentially for long-term holding, which could reduce selling pressure and provide underlying support for the price.

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