Mike Smith
Feb 22
Bitcoin reserves on exchanges have been steadily growing since early February, adding to the pressure on its price. According to CryptoQuant, there are currently 2.47 million BTC in trading platform wallets, up 1% from the start of the month. This trend could have a negative impact on price dynamics.
The growth of cryptocurrency reserves on exchanges is traditionally perceived as a possible sign of investors’ readiness to sell. The more coins available for trading, the higher the likelihood of an increase in supply on the market, which in turn could lead to a decrease in the price of BTC.
In addition, the activity of the largest Bitcoin holders – those who control more than 0.1% of the total supply – has noticeably decreased. According to IntoTheBlock, their net capital inflow has fallen by 299% in a week, which could indicate significant sell-offs. When “whales” begin to reduce their positions, it often causes concern among retail investors, increasing the effect of downward pressure.
Bitcoin is currently trading at $98,657. Over the past day, the asset has risen in price by 1.4%, but the situation remains unstable. In case of increased sales, the nearest support may be $95,650, the loss of which will open the way to $92,325. At the same time, if demand for the asset increases, BTC is able to overcome the resistance at $98,663, which will create the preconditions for growth to $102,753.
The market is in a phase of uncertainty, and the further movement of the Bitcoin price largely depends on the behavior of large players. The current situation shows that the balance between supply and demand remains fragile, and any change in the structure of capital flows can significantly affect the further trend of the cryptocurrency.
