The past couple of days saw Bitcoin consolidating between important support and resistance lines, which is arguably good for its price as it’s definitively better than a flat-out correction. Now, data shows us that the Coinbase BTC balance sits at levels not seen since December 2017.
Coinbace Bitcoin Balance Go Down
One of the ways to gauge the potential for upcoming big moves in Bitcoin’s price is by following the BTC balance on exchanges.
If the number is high, it means there are more bitcoins to be traded. It’s a very popular metric to look at, and analysts have been using it to determine the possibility of high volatility in the near-term future.
Data from the popular analytics resource, Glassnode, reveals that the leading US-based cryptocurrency exchange – Coinbase – has its BTC balance as low as it was back in December 2017.
After a period of moderate BTC inflows following the May Sell-off, Coinbase has seen a large outflow of coins.
This brings the total balance to just over 700k BTC.
The last time the coinbase Bitcoin balance was at this level was December 2017.
Bitcoin Balance on Coinbase. Source: Glassnode
Potential Implications on Bitcoin’s Price
As mentioned above, the fact that the exchange’s Bitcoin balance is low could be considered a positive sign for BTC’s price. Of course, Coinbase is just one of many exchanges, and they need to be taken into aggregation to form any meaningful thesis for the price.
Information from CryptoQuant – another well-known analytics resource – shows us that there’s been a decrease in the amount of BTC held in all exchanges’ wallets starting on July 26th.
To further support the bullish thesis is the inverse correlation between this metric and bitcoin’s price, as definitively depicted in the chart below.
All Exchange BTC Reserves. Source: CryptoQuant
In any case, it’s important to remain vigilant and keep an eye on the chart. Despite the positive monthly close, it’s still critical for Bitcoin bulls to prevent the 200-days moving average from failing as support while also following up on the recent positive price movements.
While several countries and entities are starting to consider launching their own central bank digital currencies (CBDC), Australia might be on the opposite side. The nation’s Reserve bank seems to think that there’s no current need for such a product among customers, as the payment system now is stable enough. No CBDC in Australia The…
AAVE, one of the market’s leading lending protocols, brings further offerings to its value proposition. In a recently released announcement, the protocol revealed that they have now enabled Uniswap and Balancer LP tokens to be collateralized on the platform. AAVE currently holds over $5 billion in total value locked, according to data from DeFi Pulse,…
[Featured Content] Decentralized finance (DeFi), alongside non-fungible tokens, has been the most widely-discussed topic within the cryptocurrency community over the past year. The growth of the space is more than evident, with nearly $100 billion already locked in various projects. The ability to operate without a central governing authority (typically a bank) and the possibility…
Avalanche layer 1 blockchain hit a significant milestone last weekend, according to the data compiled by IntoTheBlock. Currently, the network has amassed a balance across more than six million addresses. Such a trend suggested an increased network activity as the market continued to recover from a minor correction. Further data suggest that the number of
TL;DR MultiversX (EGLD) ranked first in gaming development activity, followed by two of the most popular projects in the sector. Axie Infinity, once a star in the blockchain gaming world, fell to the bottom of the list. This Month’s Leaders Each month, the market intelligence pla tform Santiment employs the so-called Ecosystem Dev Activity Dashboard
ETH’s price surged above $4,000 today – as of writing these lines, which gives hope of a possible short-term reversal in the downtrend. Key Support levels: $4,000, $3,700 Key Resistance levels: $4,435, $4,868 (ATH) After a very turbulent last few days, the market has turned green today, with ETH breaking above the $4,000 milestone. It…
After Bitcoin’s significant rally to above $10,000, centralized exchanges have seen the largest hourly net flow of BTC in over three months. The question remains if such a vast amount of coins heading towards platforms could unleash a sell-off and, consequently, a price drop. Record BTC Net Flow Towards Exchanges According to data from the…
[PRESS RELEASE – Singapore, Singapore, 6th July 2021] Singapore, July 6th, 2021 – What a rollercoaster ride it’s been — and we still have six more months to go before turning a new page in time. As observers of recent events can testify, one should always expect the unexpected with the crypto market. The months…
The Stock-to-Flow (S2F) model has become a popular one within the cryptocurrency industry and is commonly used to speculate on Bitcoin’s possible future price. In this guide, we’ll explain in detail what S2F is, who created it, how it applies to different types of assets, and its pros and cons. Quick Navigation What is the…