Bitcoin [$BTC] was flowing into exchanges even as the leading crypto’s price threatened to fall below $62k. Major platforms such as Binance, Kraken, and Bitstamp have seen sizeable coin inflows.
The Binance reserve rose from 662k to 671.6k $BTC, a 1.45% increase in a week. Kraken saw a 3.48% weekly increase in exchange reserves, to 154.5k $BTC. Bitstamp reserves spiked by 41.67%, or 3.5k $BTC, on Friday, the 14th of August, according to crypto analyst BorisD.
There was evidence of whale accumulation, as part of a late bear market. At the same time, rising reserves show increased selling potential. A weak recovery attempt would be smothered by this increased supply and would sustain the selling pressure.
Bitcoin whales reduce long exposure while retail remains long
The Bitcoin Whale vs. Retail Delta tracks the gap between leveraged positions held by large traders, compared to the smaller ones. Negative values mean whale positions are reducing long exposure, while retail remains long.
It fell from -0.17 on the 8th of August to -0.68 at the time of writing, the lowest reading in 61 days, according to Alphractal data.
Smart money opting to stay away from long exposure as Bitcoin faces rejection from the $65k supply zone was a warning sign. There could be increased short-term volatility.
Are $BTC’s undervalued conditions not enough to halt bears?
The Bitcoin Rainbow chart is not predictive of future price trends, but it showed something interesting nevertheless. A crypto analyst used this chart to show extremely undervalued conditions in the market.
Bitcoin is relatively cheap and can remain cheap for a while to come, but a trend reversal is not yet at hand.
The Coinbase Premium Index has been negative for over three months. Analyst Darkfost likened the CPI to a locomotive pulling the market, and having no fuel now.
The CPI measures the price difference between Binance and Coinbase. Higher interest from U.S.-based investors sees $BTC prices trade at a premium, while negative values imply a lack of interest from U.S. investors.
Sustained negative trends mean the appetite for $BTC has waned considerably and is not picking up. A recovery into positive territory would be a good sign of market confidence.
Final Summary
- Despite whale accumulation, the rising exchange reserves over the past week meant any short-term price bounce would struggle to get going.
- The negative Coinbase Premium Index showed a prolonged lack of interest from U.S.-based investors.