news 
Bitcoin exchange deposits drop to 2016 lows – Here’s what it means
Despite short-term weakening on price charts, BTC’s long-term outlook appeared positive. Despite struggling below $100K since the 19th of December, Bitcoin [BTC] has maintained a generally positive outlook.
According to CryptoQuant analyst Axel Adler, the amount of BTC being moved to exchanges has plummeted to 2016 levels. This significant drop in deposits indicates that users are preferring to keep their coins in personal wallets rather than gearing up to sell.
Notably, this trend is reminiscent of a period when similar conditions led to a major rally for BTC. As such, it is not entirely surprising that the current reading has sparked optimism about Bitcoin’s long-term prospects.
In addition to this metric, another indicator suggests that the cryptocurrency might be on the path towards a significant price increase. The Bitcoin netflow-to-reserve ratio has turned negative, revealing a higher rate of coins being withdrawn from exchanges than deposited.
This is not the first time this indicator has pointed to a bullish signal in the market. Whenever the net inflows/outflows relative to exchange BTC reserves have been negative in the past, it indicated a typical bearish trend, leading to an increase in Bitcoin’s value.
As we navigate the holiday season, BTC’s price remains range-bound and consolidates between $100K and the 50-day EMA (Exponential Moving Average). Additionally, the daily RSI slipped below 50, implying a short-term weakening in demand.
Source: ambcrypto.com
