Falling Reserves, Rising Risk: The On-Chain Signal Trap

[tradelikepro]

Bitcoin’s exchange reserves are at historic lows, but macro risks and weak liquidity are dominating price action. De-risking ahead of potential Bank of Japan tightening has added pressure, showing that on-chain data alone can mislead when global liquidity conditions deteriorate.

[Abdul Khan]

Low reserves can look bullish, but they also increase volatility risk.

[Rimon Khan]

On-chain signals need context—isolated metrics can be misleading.