Bitcoin exchange reserves rise – Is BTC’s $62K support in danger?

Bitcoin [BTC] was flowing into exchanges even as the leading crypto’s price threatened to fall below $62k. Major platforms such as Binance, Kraken, and Bitstamp have seen sizeable coin inflows.

The Binance reserve rose from 662k to 671.6k BTC, a 1.45% increase in a week. Kraken saw a 3.48% weekly increase in exchange reserves, to 154.5k BTC. Bitstamp reserves spiked by 41.67%, or 3.5k BTC, on Friday, the 14th of August, according to crypto analyst BorisD.

There was evidence of whale accumulation, as part of a late bear market. At the same time, rising reserves show increased selling potential. A weak recovery attempt would be smothered by this increased supply and would sustain the selling pressure.

Bitcoin whales reduce long exposure while retail remains long

The Bitcoin Whale vs. Retail Delta tracks the gap between leveraged positions held by large traders, compared to the smaller ones. Negative values mean whale positions are reducing long exposure, while retail remains long.

It fell from -0.17 on the 8th of August to -0.68 at the time of writing, the lowest reading in 61 days, according to Alphractal data.

Smart money opting to stay away from long exposure as Bitcoin faces rejection from the $65k supply zone was a warning sign. There could be increased short-term volatility.