- The leading digital asset finds itself in a precarious position, facing the risk of either starting a bullish ascent towards $32,000 or potentially surrendering to levels below $25,000 in the coming weeks.
- Bitcoin bulls are struggling to contend with significant selling pressure caused by daily and weekly death crosses between the 50 and 200 Moving Averages (MA).
- Over the last 30 days, approximately 21,403 Bitcoin, equivalent to around 4.41%, has been reduced from the Bitcoin supply on Binance. As a result, Binance now holds approximately 543,000 Bitcoin as of Wednesday.
The decrease in Bitcoin reserves on the world’s largest cryptocurrency exchange, Binance, has drawn attention: Is this reduction a positive sign?
Declining Bitcoin Reserves on Binance Exchange
Bitcoin’s (BTC) price is steadfastly defending a critical support level at around $27,000 as of Wednesday. The leading digital asset finds itself in a precarious position, facing the risk of either starting a bullish ascent towards $32,000 or potentially surrendering to levels below $25,000 in the coming weeks. However, most crypto experts acknowledge that Bitcoin’s price may be poised for a bullish breakout, supported by a noticeable increase in address activity.
Nevertheless, Bitcoin bulls must contend with significant selling pressure caused by daily and weekly death crosses between the 50 and 200 Moving Averages (MA). However, strong demand for Bitcoin from institutional investors, a result of increased regulatory clarity in various jurisdictions concerning cryptocurrencies, stands as a significant bullish factor.
Binance, a leading cryptocurrency exchange, wields substantial influence over Bitcoin’s price dynamics. Over the last 30 days, approximately 21,403 Bitcoin, roughly 4.41% of the total, has been reduced from the Bitcoin supply on Binance. Consequently, Binance holds approximately 543,000 Bitcoin as of Wednesday, making it the largest holder of Bitcoin among its customers.
What does this mean?
The decrease in Bitcoin reserves on Binance suggests that investors may be moving their assets to storage wallets and cold storage wallets, anticipating a potential future bull market. While not a decisive factor in determining Bitcoin’s price movement, changes in supply can help assess overall market sentiment.
Furthermore, the continuous decrease in Bitcoin reserves on Binance indicates that more investors may have a bullish outlook and are not inclined to sell their assets at current price levels.
