Bitcoin exchange deposits drop to 2016 lows – Here’s what it means 

• BTC trade deposits have shrunk to 2016 lows.
• CryptoQuant analysts view this as a sign of a significant rally for BTC in the long run.

Since December nineteenth Bitcoin [BTC] is struggling to remain under $100,000, however the long-term outlook for the cryptocurrency stays constructive.

In line with CryptoQuant analyst Axel Adler, the quantity of BTC being moved to exchanges has fallen to 2016 ranges. Adler added that the final time BTC deposits on exchanges fell this low, a significant rally ensued.

“It usually means that they might quite hold their BTC in a private pockets than get able to promote.”

Supply: CryptoQuant

In comparison with early 2024, when day by day deposits of BTC peaked at over 125,000 cash, the present worth fell under 45,000 BTC, mirroring 2016 ranges.

Extra BTC leaves the exchanges

Curiously, the above-mentioned constructive outlook was additionally strengthened by extra BTC being faraway from exchanges.

Utilizing the BTC internet flow-to-reserve ratio, Addler famous that the measure was unfavorable, underscoring its dominance in foreign money outflows.

The ratio measures the correlation between internet inflows/outflows relative to BTC reserves.

The unfavorable worth advised that, on common, extra BTC left the exchanges than registered deposits. It is a typical bullish sign.

Supply: CryptoQuant

In brief, BTC’s long-term prospects have been nonetheless constructive regardless of the current spike in development busy promoting holding the asset underneath $100,000.

In the meantime, the BTC value remained range-bound in the course of the holidays, consolidating between $100,000 and the 50-day EMA (Exponential Shifting Common).

Furthermore, the day by day RSI dipped under 50, indicating a short-term weakening in demand.

Supply: BTC/USDT, TradingView

Learn Bitcoin [BTC] Worth forecast 2025-2026

Ought to bearish stress proceed within the close to time period, a drop to $90K or $85K could possibly be on the playing cards.

Nevertheless, staying above the dynamic assist of a 50-day EMA might improve the possibilities of a $100,000 retest or a bullish breakout.