venturefounder2022-04-29

BTC exchange reserve hit new low in April 2022

BTC are taken off from and deposited to exchanges for various reasons. However, most of the time, it can be assumed an increase BTC on exchanges are with intention to sell in the near term, and those BTC taken off from exchanges are with the intention for long-term storage. This month, BTC exchange reserve hit a new low since Sept 2018 (and also a new low in the current cycle). This is regarded as a bullish on-chain signal. For example, in the period of April 2021 to July 2021, BTC exchanges went up and this was accompanies with the bearmarket in summer 2021. In contrast, BTC on exchanges remain flat during the correction which started in Nov 2021, and have gone down again during the double bottom from Jan 24, 2022 to Feb 24, 2022. BTC on-chain demand have come in since March 2022 and continued in April 2022.