Bitcoin Exchange Reserves Break Two-Year Downtrend
The Bitcoin exchange reserves have finally broken their two-year downtrend, marking a significant shift in the cryptocurrency's structural supply trend.
For most of the past two years, exchange reserves have followed a consistent pattern: lower highs and lower lows. However, this structure is now beginning to change as reserves climb back above their 200-day moving average.
The reclaiming of the 200-day SMA represents the underlying trend of the BTC supply sitting on exchanges, indicating that more coins are becoming liquid and readily available to the market.
This shift in exchange balances is a crucial development, as it could gradually become a source of distribution pressure instead of the structural scarcity tailwind that has characterized Bitcoin's previous cycle.