@errrrrrrrr
Exchange reserve trends are a direct liquidity indicator. Falling BTC or ETH reserves suggest accumulation and reduced sell pressure, while rising reserves often precede increased selling activity. In bull markets, sustained reserve declines signal strong holding behavior, often correlating with price gains. Sudden reserve spikes during rallies may indicate whale profit-taking. Breaking this down by exchange type—spot versus derivatives—adds context. For instance, inflows to derivatives exchanges can precede increased leveraged trading activity, which carries both breakout potential and heightened volatility risks.
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