Bitcoin price is making lower highs as macroeconomic uncertainty weighs on the broader cryptocurrency market.
Macroeconomic uncertainty, exchange wars, and investor indecision continue to weigh down BTC price action. On November 21, bitcoin was trading at $16,050, down about 3% on the daily chart.
Despite waning investor confidence in centralized exchanges, Binance maintained itself at the top of the rankings. The market bloodbath surprisingly did some good for Binance as the exchange took the top spot in terms of bitcoin reserves.
Binance Leads Bitcoin Exchange Reserves
For the longest time Coinbase Pro was the top dog in terms of bitcoin storage. However, the recent market crash allowed Binance to topple Coinbase down a peg.
While this move marks absolute strength for Binance during this macro bearish period, what does it mean for BTC price?
As the market was plagued by a negative sentiment, f most other exchanges saw a reduction in reserves. However, Binance overtook Coinbase Pro to take the top spot in terms of bitcoin reserves with 584,083 BTC. Coinbase followed with 533,048 bitcoin, while Bitfinex, Gemini, and Kraken took the third, fourth, and fifth spots.
Binance topping exchange reserves would mean that Binance head Changpeng ‘CZ’ Zhao could play a significant role in the market momentum. However, if CZ makes a mistake or a wrong comment, it could prove counterproductive for the entire market.
BTC prices lower, but many sell at a loss
An interesting trend to note was that when Binance Exchange Reserves increased, BTC SOPR saw a decline. The expense output profit ratio (SOPR), which measures the profit and loss ratio according to the change between the buying and selling prices of a coin, fell to 0.87 on November 13.
On the same day, 140,000 BTC entered the Binance exchange. This took the Binance exchange BTC reserves to 586,488, a new all-time high.
Despite this, on November 19, the Bitcoin SOPR tested its lowest range since March 2020, meaning that many BTC holders were selling at a loss.
Despite BTC price hitting long-term lows, analysts remain optimistic.
Analyst Will Clemente pointed out that the Bitcoin long-term holders metric had reached near-all-time highs, despite the massive drop in price over the past year.
Additionally, the long-term holder supply was at an all-time high.
Going forward, if bitcoin price can establish itself above the $16,796 level where 1.2 million addresses hold 1.1 million BTC, that level could act as a strong support.
BTC price currently lacks any solid support, so if the bears drag down the price action further, it could test the long-term lows near the $11,000 level.
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