NewsletterCrypto Market Update: Bitcoin Exchange Reserves Hit 7-Year Low
Highlights
- Bitcoin price consolidation is triggering a broader crypto market correction.
- Despite the dip, Bitcoin exchange reserves are at a 7-year low, signaling bullish sentiments.
- Analysts expect a short-term bearish movement down to $100k, but remain bullish for the long term.
Despite hitting an ATH days earlier, the Bitcoin price is consolidating below $105k, impacting the broader crypto market for the worse. Due to its high dominance and impact on the rest of the digital asset, the entire cryptocurrency market is consolidating and even crashing at times. Interestingly, despite the drop, the Bitcoin exchange reserve hit a seven-year low, which is bullish for crypto. Let’s discuss.
Crypto Market Crash as Bitcoin Exchange Reserve & Price Tank
Bitcoin price is fluctuating between $104k-$105k and is failing to break the $107k crucial resistance. The dip began with last week’s Bitcoin ETF outflows and declining investors’ greed sentiments. Moreover, the retail buyers’ activity was also low, fueling a crypto market crash today.
As Bitcoin hit $104.3k earlier in the day, the rest of the altcoins followed along, bringing a crash-like condition. Ethereum declined to $2,588, XRP price touched $2.18, and the same is true for the rest of the altcoins.
Interestingly, XRP is at the brink of a potential crash to $1.17 as its price chart shows the formation of a bearish inverted cup and handle pattern. However, crypto analyst Muthoni adds that despite the XRP crash odds, social dominance hints at trend reversal.
Besides, the BTC price recovery to $105.7k and the exchange reserve hitting a seven-year low hint at an upcoming rally.
Bitcoin Exchange Reserve Crash to $1.19M, What’s Next?
Although the Bitcoin price is consolidating, the long-term outlook remains bullish, as explainable by the exchange reserve falling to the 7-month low. According to Santiment reports, the BTC held on exchange dropped to 1.19M BTC, the weakest in the past seven years.
This drop signals that the investors are moving their holdings from exchanges to private wallets. i.e, strong long-term holding sentiments. Besides, historical reports show that such action brings bullish momentum in the broader crypto market.
Interestingly, a short-term bounce possibility is also opening, which could push the BTC price to $107.7k. However, in a different context, a bearish structure is emerging.
Crypto analysts’ Bitcoin price prediction reveals that a potential downside to $101k or even $100k could form before forecasting a bearish bias for June, but a bullish bias for 2025.
Frequently Asked Questions (FAQs)
1. Why is the Bitcoin price consolidating?
2. How is the Bitcoin price movement affecting the overall crypto market?
3. How much is the current Bitcoin exchange reserve?
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