The stock level of Bitcoin exchanges is a good way to assess market sentiment towards the cryptocurrency. The influx of funds into exchanges in the past has often indicated strong feelings about sales. It comes from investors who want to pay off the profits they make. This usually happens in bull markets when prices rise. But for the first time, the bitcoin exchange’s stock levels are falling, even as the price of the digital asset rises.
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The figures show that bitcoin exchange levels are not rising depending on price. Apparently, the situation is reversed. The number of bitcoins leaving the exchange has risen sharply recently. More than 100,000 bitcoins have flowed from exchanges in the past 30 days alone. It represents one of the sharpest declines in foreign exchange reserves in the market.
BTC foreign exchange reserves fall sharply / source: Twitter
Investors Pile Up
This number reflects a decrease in supply in the market, and the outflow of funds indicates that demand for digital technology is actively growing. Investors stick to their coins instead of carrying them to sell on the exchanges. This is putting intense pressure on the Sunday from buyers at the moment. Reducing supply will unwittingly increase the price of the digital asset.
BTC foreign exchange reserves fall in bull market for first time / Source: Twitter
These models show a unique accumulation model in the market. Bitcoin accumulation is usually the highest when the market is in a bear market. In a broad bear market, such as the post-2017-2018 bull market, investors will pile up the cash as they wait for the next bull. But the accumulation models now show that investors are saving money, even in a bull market.
Overall moods continue to be positive, with the fear and Greed Index finally turning to greed for the first time in a few months. Accumulation models now show very bullish trend in March
