On-chain data from CryptoQuant indicates a notable increase in Bitcoin reserves on centralized exchanges, reaching their highest level since June 25th. This sustained inflow reflects ongoing profit-taking and distribution by investors — a dynamic that often signals weakening buy-side pressure and hints at a potential corrective phase.
Historically, rising exchange reserves are associated with local market tops, as more BTC becomes available for potential sale. However, this metric alone should not be seen as a definitive trigger for immediate price drops. Broader market liquidity, sentiment, and demand dynamics remain key.
In essence, while elevated exchange reserves may introduce short-term selling pressure, the broader market structure for Bitcoin remains bullish. Any corrective pullbacks should be viewed within the context of a still-intact longer-term uptrend, unless macroeconomic or technical conditions shift significantly.
Written by ShayanMarkets
