In the weeks leading up to the end of 2024, the daily number of BTC deposits on exchanges fell to 30,000. According to CryptoQuant analyst Alex Adler Jr., this may indicate an imminent rally for the leading cryptocurrency.
Current figures are three times lower than the ten-year average of 90,000. According to the expert, the peak in this cycle was 125,000 deposits per day.
“When users send fewer coins to trading platforms, it usually indicates they prefer to keep their BTC in personal wallets rather than prepare for sale. The last time such a low level of deposits was observed was at the start of a major Bitcoin rally. While this does not guarantee a price increase in the near future, this trend suggests a potential shortage of Bitcoin in the spot market,” Adler Jr. noted.
The ratio of total inflows to the overall reserves of exchanges is another potential indicator of a rally.
“The most pronounced lows were observed at the end of the bear market when ‘advanced’ players actively bought coins from forced sellers at $17,000,” the expert added.
According to Adler Jr.’s conclusions, the decline in the number of deposits and the ratio of inflows to exchange reserves signals impending “more significant” price movements.
Back in late December, experts warned of a deepening correction in Bitcoin’s price before a new peak.