Coinbase, the leading cryptocurrency exchange in the US, has recorded a significant outflow of coins over the past few weeks. A report unveiled this news on September 1, citing data from on-chain data analysis firm Glassnode. Reportedly, this outflow has seen Coinbase’s Bitcoin (BTC/USD) reserves plunge to the lowest point since 2017.
According to the report, the exchange’s BTC reserves started plunging after the leading cryptocurrency started rallying in 2020. While the May sell-off resulted in moderate inflows, the recovery of the crypto market has seen BTC gain demand once again. As a result, outflows resumed, bringing Coinbase’s reserves just above 700,000 BTC.
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Although increasing outflows previously resulted in a bull rally, the crypto community believes things might be different this time around. For instance, one crypto enthusiast said the plunge in Coinbase’s BTC reserves is a result of Grayscale, Michael Saylor, and other large investors withdrawing their funds from Coinbase.
Meanwhile, BTC has been trading sideways after failing to retake the $50,000 level. At the time of writing, the coin is changing hands at $47,819.79 (34,690.15) after losing 0.23% over the past 24 hours. Over the past seven days, BTC has only gained 0.34%, indicating stagnation.
Surpassing $50,000 will position BTC for more gains
According to Willy Woo, a renowned analyst, BTC has a large pool of support levels that will help the coin maintain its current level.
In a tweet earlier today, Woo said,
At the moment, BTC’s largest resistance is $51,000.00 (£36,997.18). After breaching this hurdle, BTC is poised to rebound, retaking losses that saw it plunge from its all-time high of $64,863.10 (£47,053.96).
As BTC continues trading sideways, the rest of the crypto market is picking momentum, with Ethereum (ETH/USD) leading altcoins on a new rally. ETH is currently changing hands at $3,539.14 (£2,567.42) after gaining 3.66% in 24 hours and 12.30% over the last seven days. This level indicates the highest point ETH has reached over the past four months.
Data from Trading View shows that the coin’s technical metrics point to further gains. Oscillators are neutral in the one-day chart, and moving averages show a strong buying force. The one-week chart indicates bullish performance as well, with oscillators and moving averages pointing to mild to strong buying force, respectively.
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