BTC Reserves On Coinbase Reach Lowest Levels Since 2017

The BTC reserves on Coinbase reached lowest levels since December 2017 but what does this mean exactly? Let’s find out more in today’s bitcoin news.

The past few days saw BTC consolidating between the resistance and support lines which is great for the price as it is definitely better than the correction but now the data shows us that Coinbase BTC balance is set at levels not seen since December 2017. One of the ways to gauge the potential for the upcoming big moves in the BTC price is by following the BTC balance on exchanges so if the number is high, it means that there are more BTC left to be traded and it is a very popular metric to look at so the analysts have been using it to determine the possibility of high volatility in the short-term.

The data from Analytics resource Glassnode, reveals that the leading US-based crypto exchange Coinbase has its BTC balance at a low as it was back in 2017 which after a period of moderate BTC inflows following the May sell-off, Coinbase recorded a large outflow of coins which brings the total balance to just over 700K BTC. The last time the Coinbase BTC balance was at this level was in 2017.

The BTC reserves on Coinbase reached a new low level and the fact that the balance is low could be considered a positive sign for BTC’s price. Coinbase is one of the few exchanges and they need to be taken into aggregation to form a meaningful thesis for the price but the info from CryptoQuant shows that there’s been a decrease in the amount of BTC held in all exchanges’ wallets. To support the bullish sentiment more, there’s the inverse correlation between the metric and the BTC price as depicted in the charts.

In any case, it’s important to remain vigilant and keep an eye on the charts so, despite teh positive monthly closes, it is still critical for BTC bulls to prevent the 200-days moving average from falling as a support line while still following on the recent price movements.

Source: https://www.dcforecasts.com/bitcoin-news/btc-reserves-on-coinbase-reach-lowest-levels-since-2017/