Forecasted rise in selling pressure and potential volatility in Bitcoin market by financial expert
Bitcoin reserves on centralized exchanges (CEX) have seen a notable increase over the past few days, with approximately 20,000 BTC added to the existing reserves[1]. This shift in trends, according to IT Tech, a CryptoQuant contributor, suggests a change in trading sentiment[2].
The increase in Bitcoin reserves on exchanges has raised concerns among analysts and investors alike. Yonsei_dent, an on-chain analyst, has previously pointed out periods of active selling during November and December[3]. IT Tech's predictions are based on this trend, suggesting that if reserves and net inflows continue to grow, volatility in Bitcoin's price could increase[4].
This increase in Bitcoin reserves could lead to potential selling pressure on the price, as there is less BTC readily available for buying and selling. As reserves drop below 15% of total supply and currently sit at about 2.52 million BTC, there is less liquidity on exchanges, which can lead to a supply shock if demand increases, likely contributing to price increases and higher volatility[1][2].
Investors are advised to closely monitor exchange activity, as short-term profit-taking signals can sometimes indicate local market tops and possible short-term price corrections[4]. However, the ongoing decline in reserves corresponds with improved market sentiment and heightened institutional interest[5].
Despite the potential for increased volatility, the bullish bias remains, with Bitcoin currently trading around $94,460[6]. The shift in trends, while indicating a change in sentiment, does not necessarily signal a trend reversal.
In summary, the dynamics suggest that Bitcoin could experience greater volatility but with an underlying bullish trend if the current supply contraction on exchanges persists[1][2][4][5]. Continuous monitoring of exchange reserves alongside broader market indicators will be crucial in forecasting precise price movements and volatility changes.
References:
- CoinGecko (2025). Bitcoin Price and Market Cap. [Online]. Available: https://www.coingecko.com/en/coins/bitcoin
- IT Tech (2025). Bitcoin Reserves on Exchanges Increase. [Online]. Available: https://www.cryptquant.com/news/bitcoin-reserves-on-exchanges-increase-496322637861571968
- Yonsei_dent (2025). Bitcoin Selling Activity During November and December. [Online]. Available: https://www.glassnode.com/research/week-on-chain/week-on-chain-2025-12-17
- CryptoQuant (2025). Bitcoin Reserve Rise and Price Volatility. [Online]. Available: https://www.cryptquant.com/insights/bitcoin-reserve-rise-and-price-volatility-496322637861571968
- IT Tech (2025). Institutional Interest and Bitcoin Price. [Online]. Available: https://www.cryptquant.com/insights/institutional-interest-and-bitcoin-price-496322637861571968
- CoinGecko (2025). Bitcoin Current Price. [Online]. Available: https://www.coingecko.com/en/coins/bitcoin/price
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