The total balance on Coinbase, the publicly traded digital exchange, has fallen by about 36.6 percent in the past 24 months due to huge outflows of BTC.
Reports Show BTC Exchange’s Supply Declined
Total Bitcoin balance on Coinbase has reached about 650,000 coins, according to Glassnode, a notable on-chain analytics platform, compared to a record high of 1,025k BTC in April 2020.
Coinbase’s balance has fallen by about 30k BTC in the past week. Since April 2020, bitcoin outflows from digital asset trading platforms have been increasing. Over the past two years, the amount of BTC on exchanges has drastically decreased.
glass node mentioned in its weekly on-chain analysis report:
“Due to this outflow, the total balance on Coinbase has fallen to 649.5k BTC, bringing it back to the level last seen at the top of the 2017 bull market. Coinbase’s total Bitcoin balance is now at 375 .5k BTC (36.6%) dropped from the ATH reached in April 2020. Big outflows like this are actually part of a consistent trend in Coinbase balance, which has cascaded down. The past two years.”
Nearly 10.8% of the active Bitcoin supply is now in the hands of crypto exchanges around the world, the lowest amount in the past three years. The supply has decreased by more than 3% in the past year. On the other hand, BTC’s illiquid supply has risen to 76 percent, its highest level in ten months.
Glassnode stated the following while discussing the current market dynamics and BTC’s price action:
Bitcoin prices continue to consolidate this week and converge in an increasingly tight range between a low of $37,274 and a high of $42,455. As discussed in the previous edition, the market is currently in a delicate equilibrium, amid from a background of high macro and geopolitical uncertainty unfolding on the global stage.”
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Price drops
Bitcoin (BTC) had another short squeeze on March 15, with bulls aiming to break the $40,000 resistance level.
Huge liquidity exists above the USD 45K resistance level and below the USD 34K support zone, based on market behavior during this time period, as seen below. Before a possible healthy rise, the market normally absorbs liquidity.
The market is nervous ahead of tomorrow’s FOMC meeting, which will make key decisions about interest rates and US money supply growth/pressure.
BTC/USD monthly chart. Source: Trading Display
If the direction is up, the first major barrier is the clear downward trendline seen on the RSI indicator; conversely, if the direction is down, the first major resistance is the clear declining trendline displayed on the RSI indicator (the lower part of the following chart).
Due to the recent surge in pressure, data from on-chain monitoring source Coinglass showed minor shakeouts – BTC liquidations a total of $47 million more than 24 hours.
Graph for crypto liquidations. Source: Coinglass
The price movement, based on the daily close, also put an end to the outlook for a more optimistic outcome.
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Featured image of Admiral Markets, chart from TradingView.com