Bitcoin’s price has undergone a corrective phase after encountering resistance at the $30K level. This correction may be due to investors taking advantage of the increase from the $17K region to sell their coins at a higher price. However, a closer examination of the exchange reserve metric shows a shift in market behavior.
The chart reveals a consistent increase in the exchange reserve metric during the price rally, indicating profit-taking. Nevertheless, after the recent correction, there seems to be renewed accumulation by market participants, resulting in a rapid decline in the exchange reserve metric in the past few weeks.
If this trend persists, the reduction in supply and potential increase in demand may contribute to an upward trend in the upcoming weeks. However, it is also important to consider the perpetual futures market analysis for a more comprehensive outlook.
