Bitcoin Braces for Pullback as Exchange Reserves Climb – Here’s Why It Matters

Bitcoin’s bull run hits a speed bump as exchange wallets swell—signaling potential sell pressure ahead.

The reserve reckoning: On-chain data shows a troubling trend of BTC moving back onto trading platforms. Historically, this precedes dumps as traders position for exits.

Market mechanics at play: Every coin deposited becomes a loaded gun. When exchanges hoard over 2.5M BTC like they’re doing now, the trigger finger gets itchy.

The silver lining? Veteran hodlers are treating this as a discount window—because nothing makes crypto traders happier than ‘buying the dip’ until their portfolios bleed out.

Watch the order books. When CEX reserves spike while institutional inflows slow, even Wall Street’s ‘digital gold’ narrative can’t stop the leverage rats from fleeing the ship.

Volume has declined relative to recent highs, which is consistent with the ongoing profit-taking narrative. At 68.11, the relative strength index is just below the overbought level, indicating that momentum is cooling off even though it’s still positive.

If Bitcoin closes below the 20-day SMA and the mid-Bollinger band, it might decline further toward the lower band around $105K. On the upside, a fresh breakout above $122,000 WOULD probably invalidate the bearish theory and confirm that the upward trend is still in place.