Coinbase’s Bitcoin reserves drop to the lowest level since December 2017 – Cointelegraph - Spartucus Bit

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Wednesday, September 1, 2021

Coinbase’s Bitcoin reserves drop to the lowest level since December 2017 – Cointelegraph

Bitcoin (BTC) revisited weekly lows on Sep. 1 as the new month got underway with a fizzle rather than a bang.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin lingers in “price stability”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $46,530 on Bitstamp overnight, its lowest since Aug. 27.

With $50,000 out of reach, price action continued to diverge “remarkably” from strong on-chain metrics and fundamentals.

For analyst Willy Woo, who echoed similar findings from this week, a large pool of support at current levels is likely to hold Bitcoin where it is. Over 1.65 million BTC has a cost basis between $45,000 and $50,000.

“Bitcoin approaching another region of notable price stability,” he told Twitter followers Wednesday.

“Short term technicals are weak while on-chain, investors are in accumulation. All the makings of a volatility squeeze. Breaking 50 likely a fast track to 60.”

The area around $51,000, which this week remains active as a “final hurdle” resistance level for Bitcoin, is widely tipped to crumble in the mid-term, but the exact timing of such an impulse move is a mystery.

Investors seemed ready to go on the day, with reserves on major exchange Coinbase at their lowest levels since December 2017 — 700,000 BTC — and almost $20 billion in stablecoins sitting across centralized trading platforms ready for conversion.

“After a period of moderate BTC inflows following the May Sell-off, Coinbase has seen a large outflow of coins,” on-chain analytics firm Glassnode commented on the data. 

Coinbase BTC balance annotated chart. Source: Glassnode/ Twitter

Ethereum leads altcoin boost

For Cointelegraph contributor Michaël van de Poppe, however, it was business as usual for a BTC consolidation.

Related: 3 reasons why Polkadot could be the next altcoin to hit a new all-time high

“Yep, Bitcoin is following this path,” he summarized.

“Overall; pretty normal consolidation resulting in altcoins breaking out heavily with Ethereum as the first one breaking to new highs.”

MeETH/USD passed $3,500 overnight, marking its highest in three months against the U.S. dollar and BTC. Its cryptocurrency market cap dominance rose to 20.4%, with Bitcoin’s steady at 44%.

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView


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