Exchange reserves kept going downhill nonstop
According to the on-chain analytics firm IntoTheBlockBitcoin recorded its biggest net outflow from exchanges in six months. It notes that over 70,000 BTC worth $1.52B left the exchange in a single day – i.e. on 26 October.
The reserves held on exchanges have likewise kept going downhill nonstop, reaching multi-year lows throughout October and bouncing back to levels from January 2018. In essence, all coin volumes that entered exchanges since the peak of the last cycle have now been withdrawn into a nonexchange-related wallet.
According to Glassnode, over 123,500 BTC were withdrawn in the first three weeks of October alone, or 0.86% of the total supply. Even though exchange reserves are not in themselves an indicator, it provides a positive background in the context of bearish market conditions.
Most wallet cohorts showed a noticeable shift in their behavior toward balance changes in October. Small BTC holders (<1 BTC) and likewise whales (up to 10K BTC) have shifted away from a net balance distribution and reduction and toward a net balance accumulation and increase.
Prices have remained stable and have some volatility, which indicates a tendency for patient accumulation around the lower range. Given that the prices remain flat and low volatility, this suggests a trend towards patient accumulation at the lower range.
Bitcoin building base at $20K
Following an unexpectedly positive GDP report in the U.S. that failed to dissuade investors from underlying worries about inflation and a potentially deep recession, cryptocurrency markets halted their two-day advance.
The US economy expanded by 2.6% in the third quarter, in contrast to forecasts for 2.4% growth. The economy appears to be expanding, in contrast to the 1.6% and 0.6% contraction in the first and second quarters. BTC touched a low of $20,034 before a slight rebound near $20,134 where it is currently trading.
