In fundamental analysis, price is a slave to the law of supply and demand. The exchange reserves indicator is the most important metric to determine whether the market stock is filled or empty. It is the key to predicting parabolic growths.
🔸 What happens when the exchange reserves chart continuously decreases?
Investors are aggressively withdrawing Bitcoin or cryptocurrency from centralized exchanges to cold wallets or private wallets.
They do not intend to sell in the short term. They want to hold long-term or participate in DeFi.
The floating offer on exchanges is becoming limited. When the demand for purchases remains constant or increases, while the supply available for sale decreases.
👉 The price is forced to rise to find a new balance. This is the most reliable long-term bullish signal.
🔸 Conversely, if exchange reserves are sharply increasing:
Whales are moving coins from cold wallets to exchanges.
Typically, to sell for profit or use as collateral for short derivatives. This is an alarm signal about bearish risk.
🔹 Don't just look at the green and red price candles. Look at the supplies. If the price remains stable, but the inventory is emptied daily, this is calm before the bullish storm.
At this moment, are most of your assets on exchanges or withdrawn to cold wallets?
News is intended for informational purposes only and not for investment advice. Please read carefully before making a decision.
