Bitcoin Exchange Reserves Increase Amid ATH. What Does it Mean?

Bitcoin is one of the top gainers in the last 24 hours as traders celebrate BTC Pizza day. It saw massive buying actions that resulted in a new all-time high. 

The apex coin opened trading at $109,696 on Thursday and broke above $110k, peaking at $111,888. The new ATH follows several failed attempts to break the $107k resistance. 

As a previous analysis hinted at, Bitcoin’s latest milestone is no surprise. The write-up highlighted several reasons to expect a surge above $120k and predicted a rise above $109k. Another such article concluded that the cryptocurrency will break above $110k.

The milestones have since sparked a lot of reaction from traders, with some expressing their joy on X. Others used the avenue to call out Peter Schiff and those who sold their bags at $76k. The reception of the latest remains relatively positive, and investors expect more. 

Derivatives are booming with activity as bearish traders register massive losses. Liquidated short positions exceeded $146 million in the last 24 hours, against the $50 million liquidated long positions. Open interest has since increased by over 7% as the taker buy-sell ratio surged above 1. 

The apex coin sees notable onchain activity as active addresses increase and the Net Unrealized Profit increases. Indicators remain positive on the one-day chart. However, reading from the exchange reserves sparks notable concerns.

Exchange Reserve Increases

Data from CryptoQuant shows that exchange reserves are increasing. They registered a 0.20% change in the last 24 hours. The chart below indicates that this is the first time they have seen such growth in the previous seven days. 

Other metrics, like exchange outflow and inflow monitoring, explain the reason for the spike. Investors moved out over 45.6k BTC from these trading platforms, as opposed to the 49.6k units they moved back in. The bulls are struggling to soak up the excess supply this creates. The trade indicates that some traders are moving assets to sell on exchanges.

Data from Coinglass shows an increase in short positions. Some bears are placing limit orders at $112,500, while others entered the positions at $111,900. This means that while some anticipate further increases to $112k, others are placing pressure on the current price.

Nonetheless, several indicators remain positive at the time of writing. Recall that a previous analysis pointed to a possible flip of the second pivot resistance. The flipped on Wednesday, and the apex coin gained more leverage above it on Thursday.

The article also noted the movement of the moving averages, highlighting the reducing gap between the 50-day and 200-day MAs. Bitcoin finally had its golden cross a few minutes ago. Historically, such an event may result in a further bullish trend.

Bitcoin Investor Remains Skeptical

A search through X shows very few Bitcoin proponents offering predictions about its future price action. Many big accounts are silent about its next price action but express satisfaction over its current milestone. The trend suggests that most are not entirely convinced about the uptrend.

Most analysts suggest that the apex coin is due for correction. A look at the one-day chart shows that the relative strength index is above 70 as the BTC continues to be oversold. Let’s see how price may play out in the coming days.

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