Bitcoin's $100K Hike Stalls as Exchange Reserves Surge
1min read Bitcoin's recent price recovery above $100,000 may face significant resistance as its exchange reserves continue to rise. Data from CryptoQuant shows a steady uptick in BTC's exchange reserve since February 6, with 2.47 million BTC currently held in exchange wallets, marking a 1% surge since the beginning of the month. This trend suggests that more coins are being moved to exchanges, likely for onward sales, putting downward pressure on BTC's price and keeping it further from breaking above the critical $100,000 mark.
Bitcoin's exchange reserve refers to the total amount of BTC held in exchange wallets. When this spikes, more coins are being deposited into exchanges, signaling increased selling pressure in the market. Notably, this trend coincides with BTC's sideways price movement since the beginning of February. Over the past 15 days, the leading cryptocurrency has traded within a tight range, facing resistance at $98,663 while finding support at $95,650.
The rising exchange reserve suggests that the persistent selling activity is preventing a strong breakout to the upside. If the buildup of exchange reserves continues, it could trigger a downside breakout, putting BTC at risk of a price correction. Another cause for concern is the decline in BTC whale activity. Over the past week, the coin's large holders' netflow has plummeted by 299%, highlighting a significant selloff among them. Large holders refer to whale addresses that hold more than 0.1% of an asset's circulating supply. Their netflow measures the difference between the amount of coins they hold and sell at a specified period. When netflow drops, it means whales and institutional investors deposit more tokens into exchanges than they withdraw, signaling increased selling pressure among major holders, a trend that could also prompt retail traders to sell their holdings, further amplifying the downward pressure on BTC's price.
If selloffs intensify, BTC's price could attempt to test the support at $95,650. If this level fails to hold, the coin risks plunging downward to $92,325. On the other hand, a resurgence in demand could propel a breakout above the resistance formed at $98,663. If successful, BTC could extend its gains toward $102,7 
