The data shows that the Bitcoin exchanges (BTC) lost 100,000 BTCs during last weekend’s price drop, and that would be a sign of the upward trend.
Figures from the CryptoQuant chain monitoring resource on August 5, which tracks the exchanges‘ balances, show a dramatic drop just after the BTC/USD pair lost $1,200 in a matter of minutes.
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BTC exchange reserves hit significant lows
Before the turbulent weekend, Bitcoin’s balances on the exchanges were approximately 2.49 million BTC ($29.2 billion). After that, the account fell to 2.39 million BTC ($28 billion), the lowest figure ever recorded by CryptoQuant.
According to popular analyst Cole Garner, the change is another indication that the general mood among investors is extremely optimistic.
„The amount of #Bitcoin remaining in the exchanges has just fallen off a cliff,“ he wrote on Twitter on Thursday.
„It happened two days ago – the whales bought the sale. The flow of $BTC coming out of the exchanges is *bullish*“
As reported by Cointelegraph, the decline in the number of currencies held in the cryptoexchanges suggests that investors plan to hold BTC, not sell or trade it in the short term. Garner agrees.
„The only reason to take them out of the exchange is because they don’t plan to sell them in the short term,“ he added.
The Sandbox announced the sale of its tokens for $3 million through the Binance launch pad.
Bitcoin exchange reserves 2-week chart
Binance may need less hot wallets
The whales, those with large quantities of Bitcoin, seemed to have anticipated the withdrawal much earlier, as the coins returned to the exchanges a week earlier.
Commenting on the trend, CryptoQuant offered an alternative, but no less bullish, explanation involving the large cryptoexchange Binance.
„68,101 BTCs transferred from Binance to a new wallet, and it is not clear whether it is their new cold wallet or the custody of a third party,“ the firm replied to Garner.
If Argentina had bought bitcoins in 2009, would it be able to pay its foreign debt now?
„Even if it is Binance’s, it could be a bullish sign, as Binance decided to reduce the amount of hot wallets in charge of user withdrawals.
The BTC/USD pair was heading towards $11,800 at the time of writing, as the remnants of the fall dissipate and the $12,000 becomes a target again.
Earlier this week, Cointelegraph Markets analyst Michaël van de Poppe suggested that the next correction may be the last chance to buy BTC at a discount.