Bitcoin's Bottoming Signal Remains Elusive Amid Weakening Spot Demand
Despite easing selling pressure, Bitcoin has yet to confirm its bottoming signal, according to analysts at Glassnode. The historical indicator for a market bottom has not been reached, and experts are cautious about the potential impact of weak spot demand and US market pressure.
The number of Bitcoin reserves on Binance hit a six-month high of around 667,500 BTC in August. This is a significant increase from April's level of approximately 616,000 BTC, representing a growth of over 50,000 BTC in just a few months.
Experts note that an increase in reserves on a centralized exchange can potentially lead to increased selling pressure if holders decide to offload their assets. However, they also point out that this could be tied to liquidity rebalancing or changes in custodial storage rather than mass selling.