Bitcoin Exchange Deposits Decline As There is No Incentive to Sell: Report


Bitcoin deposit to cryptocurrency exchanges continue to decline in sharp contrast to previous BTC price rallies according to an observation by Glass Node.

GlassNode offers advanced on-chain insights, tools, and data for Bitcoin and other digital asset investors.

Not surprising, the trajectory has been interpreted as bullish by a parallel Twitter poll organized by the analytics firm.

BTC Deposit to Exchanges on a Decline

In the 2019 Bitcoin bull run when prices rebounded from lows of $3,200 following a brutal 2018 dubbed the Crypto winter, the number of BTC deposits rose in tandem. This was pinned to inevitable profit-taking.

“BTC exchange deposits continue to decline as investors have fewer incentives to sell. During last summer’s rally, we saw highs of over 60k unique daily deposits – likely investors taking profit. Since then this has decreased by nearly 60%, down to 25k.”

However, opinions vary on this observation. A Bitcoin investor countered Glass Node observation saying:

“I think most are not just hodling for the halving run up, but also for the massive, parabolic price run up which typically follows afterwards. Historically, this offered the best r/r rate in a BTC cycle. Peak HODL likely to be reached in a few months from now.”

Bitcoin Uptrend is Firm, Halving Could Explain Deposit Decline

Bitcoin uptrend remains firm.

Although prices are cooling down at the time of press, yesterday’s uptick of trading volumes that dragged prices could be a hint of what lays ahead. From the chart, the immediate resistance is at Q3 2019 support, now resistance.

As laid out in previous BTC analysis, any surge and breakout above this zone may lead to more open interest and possible decline in the number of BTC deposits to leading cryptocurrency exchanges.

If this drop in BTC depositing to cryptocurrency exchanges is because of halving set for May 2020, asset prices at spot rates may offer handsome returns for traders in an undervaluation scenario.

Bitcoin Open Interest at $1 Billion

Meanwhile, the number of Bitcoin open interest is now approaching the psychological $1 billion at BitMex while month-to-date gains now stand at 30%.

Analysts now say this a precursor of a deeper correction that could see BTC prices tumble since open interest at, or near those levels have been historically rejected.

Summary

Bitcoin Exchange Deposits Decline As There is No Incentive to Sell: Report

Article Name

Bitcoin Exchange Deposits Decline As There is No Incentive to Sell: Report

Description

Bitcoin held by cryptocurrency exchanges continue to decline in sharp contrast to previous BTC price rallies according to an observation by Glass Node.

Author

Dalmas Ngetich

Publisher Name

CoinGape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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