BeInCrypto takes a look at on-chain indicators for Bitcoin (BTC) and Ethereum (ETH), more specifically those that deal with the amount of coins on exchange balances.
Bitcoin (BTC) exchange balance
The amount of BTC that is held on exchange wallets has been falling since March 2020, when a total of 3,118,057 coins were held in exchange addresses. This value still stands as an all-time high.
An exodus of BTC from exchange balances usually means that the BTC is being transferred to cold storage. Therefore, it is considered a sign of conviction by holders.
Initially, the indicator bounced on Oct 2021 (black circle). Since the BTC price was increasing at the time, this could have been seen as a sign that investors are returning their tokens to exchanges and selling them.
However, the indicator has been falling since and made new lows on March 20 (red circle). Therefore, the current sentiment is back to that of holding. The current value of 2,507,055 is the lowest since Nov 2018.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
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