Bitcoin Exchange Reserves Plummet to Record Lows—Hodlers Aren’t Selling

Crypto’s ultimate HODL signal just flashed red—or green, depending on your diamond-handed bias. Exchange wallets are bleeding Bitcoin faster than a hedge fund manager’s credibility during a market crash.

The big squeeze: Traders are yanking coins off exchanges at a record pace, suggesting either irrational confidence in ATH-breaking rallies... or that everyone finally learned not to keep assets on platforms after the 10th ’unprecedented hack’ of the decade.

Wall Street translation: While traditional finance builds golden parachutes, crypto’s true believers are stitching theirs from Ledger wallets and multisig setups. The irony? This ’risky’ asset class now shows more supply discipline than the Fed’s balance sheet.

One thing’s clear—when even the degens stop trading, you’re either witnessing the dumbest capitulation or the smartest accumulation play in history. Place your bets before the suits ’discover’ this trend and package it into a leveraged ETF.

• There is the least amount of Bitcoin on exchanges ever seen which shows that many long-term investors and institutions are accumulating it. 

• Even though Bitcoin remains above $100,000, ADX and MACD indicate a possible short-term slowing down. 

• A lack of exchange supply could make the market tighter which might support long-term price increases during uncertain periods. 

Ash Crypto reported on X that the amount of Bitcoin held in exchanges reached its lowest level ever. Many believe that this fall in reserves indicates some investors and institutions are buying and holding more.

Fewer Bitcoin Exchange Reserves Reflect Long-Term Investor Trust

Looking at the chart shown by Ash Crypto, which uses CryptoQuant’s data, the line for exchange reserves, which is purple on the chart, has gone down slowly over the years. Recently, it got below 2.5 million BTC, the lowest point shown.

As exchange reserves go lower, it indicates less bitcoin in trading accounts. Many view this as a sign that people are sure Bitcoin will be worth more in the future.

People holding their coins instead of selling can make the market feel tight which can boost the value of cryptocurrencies in the long run. Yet, the crypto market changes unexpectedly and this data is only part of what influences the prices. Sometimes, world economy and the mood of investors have an impact as well.

Source: X (@Ashcryptoreal)

Technical Indicators Hint at Potential Slowdown

By checking the TradingView 4-hour chart for BTC, there’s a clear view of Bitcoin’s price changes and use some indicators to guess its future trends. In the last few days of May, the BTC price dropped slightly to $105,148.73, a small decline of $434.77, or about 0.42%, as shown at the top of the chart.

Despite this dip, Bitcoin remains strong, sitting well above the $100,000 mark. Two important tools on the chart are also used to BTC’s predict price: the ADX and the MACD.

With the ADX or Average Directional Index at 34.94, it appears the trend is strong but hasn’t reached its maximum point yet. If the number is higher, the trend is stronger and if it is lower, the trend seems to be weakening.

On the chart at the bottom is another tool called the MACD or Moving Average Convergence Divergence. The MACD line is at 168.78 and the signal line is at -785.58 which makes the difference between them -954.37.

It shows that the downward change could mean the upward streak is starting to slow down. This trend shows Bitcoin could struggle to rally in the short term.

Source: TradingView