Bitcoin exchange reserves are at five-year low! What does it mean?

The amount of #Bitcoin held on exchanges fell below 2.3 million BTC, falling to its lowest level since March 2018. This decline was associated with significant outflows from major exchanges such as Binance and Coinbase, revealing that investors are placing greater emphasis on long-term investing.

In the last year, it has been seen that a large amount of #BTC has been withdrawn from the Binance exchange, which has the largest Bitcoin reserves. Likewise, Coinbase also experienced significant outflows in 2024. Approximately 16 thousand BTC was transferred out of the US-based exchange in just one day.

This trend is becoming more evident as large Bitcoin holders, or “whales,” transfer their assets to private wallets. This movement indicates that whales are moving in anticipation of future price increases.

Bitcoin is currently trading at $67,731 on the 4-hour chart. The pivot point at $68,000 indicates that #BTC will remain in a downtrend as long as it remains below this figure. While the levels of 69 thousand, 70 thousand 600 and 71 thousand dollars appear as short-term resistances, the closest supports are at 66 thousand 650 and 65 thousand 950 dollars.

The relative strength index RSI is at neutral point with 46.62 points. Bitcoin is changing hands just below its 50-period exponential moving average at $68,000.

While the upward trend line supports #Bitcoin around $66,650, a double bottom formation is also evident. Generally, this pattern indicates that Bitcoin may initiate an upward move from its current level.
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