Why is Bitcoin price down today despite falling exchange reserves?

Bitcoin’s price fell despite declining exchange reserves because reduced exchange balances indicate tighter liquid supply but do not guarantee immediate buying demand. The drop was driven primarily by broader risk-off sentiment, profit-taking, and technical selling, which outweighed the bullish signal from withdrawals. Falling reserves may support Bitcoin over the longer term by reducing readily available sell-side liquidity, but they have limited influence during short-term market weakness.