Despite the Bitcoin price correction 287 days after the latest halving event, on-chain metrics suggest that fundamentals remain strong.
Analyst TheLordofEntry shared insights on key indicators that indicate continued demand growth and strong holder behavior. This strength is despite recent short-term volatility.
Exchange Bitcoin reserves have reached an all-time low! 📉
Bitcoin reserves on exchanges continue to decline, suggesting investors are choosing to hold rather than sell. pic.twitter.com/jrefZIrtdM
— TheLordofEntry (@thelordofentry) October 13, 2024
Bitcoin foreign exchange reserves reach record low level
One of the most important fundamentals is that Bitcoin (BTC) reserves on crypto exchanges have fallen to record lows.
This trend shows that investors are increasingly choosing to hold their BTC rather than holding it on exchanges for possible sale. Declining foreign exchange reserves are often interpreted as a bullish signal. This is also a potential signal of less immediate selling pressure.
The analyst highlighted that active addresses and transaction volumes on the Bitcoin network remain high. This indicates that on-chain activity continues despite the price correction.
TheLordofEntry also highlighted major changes in the derivatives market. According to data shared by analysts, positions in the derivatives market have decreased significantly, indicating lower leverage among traders.
Long-term holders continue to scoop up Bitcoin
Investor behavior accurately shows that long-term holders continue to accumulate BTC. In contrast, short-term holders are showing signs of selling.
The analyst suggests that the long-term trend may remain positive based on the accumulation pattern of experienced investors and the decline in foreign exchange reserves.
Bitcoin has struggled to maintain its positive trajectory since hitting an all-time high of $73,700 in March. BTC managed to recover to the $65,000 level, but some market conditions caused the price to drop below the $60,000 level.
BTC is currently hovering at the $62,600 level as the global cryptocurrency market capitalization has fallen over 1.6% in the past 24 hours.
