Over the past few days, Bitcoin has been steady between important support and resistance lines, which is probably good for its price because it is definitely better than a full correction. Now, the data show us that Bitcoin Coinbase inventory is at a level not seen since December 2017.
Coinbace Bitcoin Balance Go DownOne way to gauge the potential for big Bitcoin price movements in the future is to follow the BTC balance in exchanges.
If this number is high, it means that there is more bitcoin to trade. This is a very general criterion to look at, and analysts use it to determine the likelihood of large fluctuations in the near future.
Data from the popular analytics source, Glassnode, shows that the BTC inventory of the US-based cryptocurrency exchange Coinbase is as small as December 2017.
After a period of balanced BTC inflows following massive May sales, Coinbase has seen a large outflow of bitcoins.
These outputs bring the total inventory to just over 700,000 BTC.
The last time Bitcoin inventory was at this level was in December 2017.
Possible consequences for the price of bitcoinAs mentioned above, the fact that the bitcoin balance of this exchange is low can be considered a positive sign for the price of BTC. Of course, Coinbase is just one of several exchanges, and they need to be considered in order to form any meaningful thesis about price.
CryptoQuant data - another well-known source of analysis - shows us that since July 26, the amount of BTC in the wallets of all exchanges has decreased.
To further support this bullish thesis, there is an inverse relationship between this benchmark and the price of bitcoin, which is definitely shown in the chart below.
In any case, it is important to stay vigilant and monitor the chart. Despite the positive closing of the monthly candlestick, it is still important for bitcoin cows to avoid breaking the 200-day moving average as support, while also following the recent positive price changes.
Source:
https://cryptopotato.com/bullish-bitcoin-reserves-on-coinbase-the-lowest-since-december-2017/It's very interesting to see this sort of information in a nicely formatted graph. If you picture Coinbase as primarily driven by retail customers who hold funds there, then the evidence would seem to suggest that individuals have been selling their holdings and that money has steadily moved off the platform. I don't think it's just a coincidence that companies like Paypal were announcing their own moves into Bitcoin since that dip started and it's likely a lot of financial institutions/whales will be contributing to that drop. Who knows what it will lead to in the future, but it is probably bad for Bitcoin in the long run if it is being consolidated into fewer and fewer wallets.
