Bitcoin [BTC] exchange reserves have dropped massively, and Spot retail activity is close to recent lows. Regardless of it all, BTC traders may have reason to believe.
Here’s why.
BTC exchange reserves fall, retail demand weak
Bitcoin’s split.
On one hand, exchange reserves across all exchanges have been in freefall, down to 2.683 million BTC at the latest reading. That’s one of the lowest reserve levels seen in recent months, down from close to 3 million BTC in late April-May 2025.
There are fewer coins on exchanges, so no one’s in a rush to sell.
At the same time, price has recovered from the early February dip. Supply is getting tighter.
But here’s where things get interesting. Spot retail activity, seen through the trading frequency surge, is the weakest it’s been in the last year. After peaking when Bitcoin traded at the ATH range, retail participation fell and hasn’t shown any muscle since.
Bull score rebounds to 40!
Put all that against Bitcoin’s Bull Score Index. The latest reading showed nearly 40, which is the highest number since October 2025.
That’s a big improvement from the weaker numbers of earlier this year, when the score briefly went toward the lower end of the scale.
The recovery isn’t over. Readings above 60 have so far come with bullish phases, particularly during BTC’s rallies toward the $90K-$120K range in 2024 and 2025.
There’s a clear contrast with the falling exchange reserves above. While supply conditions improve, the pace is yet to fully return. So, BTC may be moving out of its weaker phase, even if we can only see a transition rather than a full-blown breakout.
Bull Score needs to reclaim the 60+ levels in the sessions ahead for BTC to properly rise.
Final Summary
- Bitcoin exchange reserves have dropped to 2.683 million BTC.
- Despite weak retail activity, BTC’s Bull Score Index has rebounded to 40.
