In the past 24 hours, 25,878 Bitcoins have been moved off from exchanges. The move is the largest outflow in 5 weeks, according to Santiment data. In the past, large quantities of $BTC moving off exchanges have led to price increases, providing a few days for the pattern to hold.
Daily Exchange Flows Rise
Bitcoin is currently trading around the $40,000 mark, well below its peak in March. Hence, many investors are wondering if the bear trend will continue or become bullish.
The market capitalization of Bitcoin and other major cryptocurrencies on controlled exchanges typically reflects crypto traders’ mood. Large outflows of Bitcoin, in this case, indicate an accumulating trend among investors.
Liquidity on the crypto market falls as more currencies leave exchanges, putting more significant pressure on the market and increasing volatility. Even though the negative net flow isn’t always linked to accumulation, it’s still a good element for an asset’s value because it reduces supply.
Of course, the exchange flow metric is only one part of the supply/demand equation. For the exchange outflow to increase Bitcoin prices, there must also be substantial demand for Bitcoin. That demand has not been present in sufficient quantities up to this time.
Institutions Accumulate More BTC
Ki-Young Ju, CryptoQuant CEO, wrote on Twitter that 30k $BTC flowed out from Coinbase today. According to him, institutional purchases might become the focus again because the Executive Order did not present any obstacle.
During a recent meeting with shareholders, Michael Saylor, the CEO of MicroStrategy, said that his company would continue to pursue its reserve assets strategy to acquire more Bitcoin.
According to a report by Bitcoin Treasuries, Saylor’s company is the world’s biggest single-wallet holder of Bitcoin. It has a total of 129,218 coins. On April 5, it bought another 4,197 coins. Aside from MicroStrategy, Tesla is the runner-up in the hodling race. It owns 43,200 bitcoins worth nearly $1.7 billion.
Despite the global economic and political uncertainties, Do-Kwon’s Terra and MicroStrategy’s Bitcoin purchases have helped maintain a positive view of the cryptocurrency’s price. Terra’s holdings have increased to around 42000 coins, only 800 behind Elon Musk’s Tesla.
Bitcoin Market Performance
Bitcoin’s price had risen past the $41,000 barrier level. BTC even broke beyond the $41,400 barrier and attempted to break through the $41,500 resistance zone.
On the other hand, the bears were active at the $41,500 mark. BTC made a peak at around $41,548, and the price began to fall again. The price has moved below the $41,000 support level. The price fell below the latest advance’s 50 percent Fib retracement level from the swing low of $39,269 to the high of $41,548.
Furthermore, on the hourly chart of the BTC/USD pair, there was a breach below a significant bullish trend line with support at $40,400. The pair is currently trading below $41,000 and the 100 hourly simple moving average.
If the bulls can break through the resistance levels of $40,400 and $40,500, the price could reach the next resistance zone of $41,000. It would pave the way for a move towards the next significant resistance level of $41,500.
Optimism in the Long Run
Many people are optimistic about the future of Bitcoin, with some suggesting that its price could reach $100,000 within the next 12 months. According to Antoni Trenchev, a former Federal Reserve official, a crash in the stock market could trigger another round of monetary easing by the central bank.
His opinion is similar to Alex Mashinsky, the CEO of Celsius Network, who believes that the crypto market will perform well during a recession, which he expects next year.
Source: https://crypto.news/bitcoin-exchange-outflows-high-bullish-signals/