Exchange BTC reserves are stable and not indicating an impending shortage.
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We are heading into a hectic week and BTC is weakening due to the potential for deteriorating risk appetite in the upcoming days. Despite weeks of discussions about the interest rate increase risk in Japan, the current flight from risk continues largely for this reason. Although fear has been priced in, we might not have hit rock bottom yet. So, is Fartcoin a viable option at this stage?
ContentsFartcoin Price TargetBitcoin Reserves in Exchanges Fartcoin Price Target
Without a magical crystal ball to predict the future, determining price direction is challenging. However, experience-based technical analysis readings can provide insights into what the future might hold, as price actions often repeat past patterns, or at least they rhyme. Columbus highlighted the ABC correction emerging in today’s Fartcoin chart. The analyst who shared the chart predicts a peak reaching $0.45 once the correction is complete. However, what concerns us is the potential of the price testing the $0.26 region in next week’s anticipated general market correction. This could present a short-term buying opportunity, or the price may lose this level, leading to a larger correction extending to $0.225 and $0.17.
“It looks clean on a daily basis – it may form a leading diagonal for wave 1 or A.
Personally, I lean towards one more downward step in the ABC correction, ideally to the 0.5 equilibrium point or 0.707, aligning with the re-testing of the range’s low levels and clear liquidity pull.
In the bigger picture: once the correction is complete, we’re likely to see a rise.”
Bitcoin Reserves in Exchanges
CryptoQuant data reveals a significant reduction in BTC supply within exchanges. However, based on checkonchain’s data that includes assets across all platforms, Darkfost argues otherwise. Accordingly, the supply within exchanges is just below its all-time high, and while there is steady data, there isn’t a major decrease.
“Exchange reserves are not zeroing out. When taking a broader view, this isn’t the case. Almost every day, claims appear suggesting exchange reserves are in freefall. However, in reality, exchange balances are still just 5% below the all-time high of 3.46 million BTC.
Today, exchanges still hold around 3.27 million BTC. Contrary to some claims, this figure is far from showing a shortage of Bitcoin $90,357.50 on exchanges.
However, it is true that exchange reserves have gradually decreased throughout this cycle. This doesn’t necessarily imply scarcity, but rather indicates a change in market structure.
Spot Bitcoin ETFs require their own reserves now, treasury-focused firms have emerged on the scene, and the expansion of DeFi allows Bitcoin derivatives to be used as collateral.
Beyond this, events like the collapse of FTX and various platform and protocol exploits have led more investors toward self-custody. “Not your keys, not your Bitcoin” is no longer just a slogan, but a mindset. In some regions, especially Europe, stricter regulations also play a role. Increasingly heavy taxation and compliance requirements on crypto assets might push investors away from exchanges where they may need to share personal data with tax authorities.
In short, exchange reserves are not collapsing. They are being redistributed in a more complex and diversified ecosystem than before.”
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