Billions Worth Of Bitcoin Pulled From Exchanges: Is BTC Preparing For $72,000?
July 18 2024 - 3:30PM
NEWSBTC
Bitcoin is steady when writing, floating above immediate support
levels and inches away from reclaiming the all-important local
liquidation line at around $66,000. Even as the broader crypto
community expects buyers to step in and push prices higher, there
are exciting developments that buttress this outlook. Billions
Worth Of BTC Pulled From Exchanges According to exchange data
shared by one analyst on X, BTC holders increasingly pull their
coins from exchanges. On July 5, when prices tanked, pushing the
world’s most valuable coin close to $50,000, a staggering $3.8
billion BTC was moved from exchanges. Once this happened, prices
rapidly bounced back, rising from as low as $53,500 to $65,000
recorded earlier this week. Though prices have been moving
horizontally above $62,500 recently, more BTC is being withdrawn.
On July 16, BTC owners pulled another $3.4 billion of the coin.
Related Reading: Why Did The German Government Sell Off 50,000
Bitcoin In 2 Weeks Even though there is no clear impact on prices,
if past performance guides, it is likely that prices will edge
higher like they did after the collapse to $53,500. Usually,
analysts interpret exchange outflows as positive for price.
Whenever coin holders move assets to non-custodial wallets, they
want to take control of their coins. As such, they might be
unwilling to sell. Their decision helps support prices since they
won’t sell on demand if they wish to, like if they held them on
crypto platforms like Binance or Coinbase. Moreover, with fewer BTC
readily available on exchanges, bulls tend to benefit due to
increased scarcity. Is Bitcoin Preparing For Another Leg Up Above
$72,000? Beyond this development, another analyst notes that the
Realized Profit and Loss Ratio metric has fallen and
stands at multi-month lows. The metric is used to gauge market
sentiment, mainly influenced by profit and loss at any point in
time. This decrease suggests that investors who wanted to exit at
highs have already taken profit. For now, traders must wait for
these metrics to rise, perhaps to multi-month highs, ideally above
$72,000 and $74,000, before profit-taking resumes. Related Reading:
XRP Price Plummets To $0.5724, Can Bulls Maintain Support? Bitcoin
has also reclaimed its average cost basis of short-term
holders (STHs) as prices recover above $62,000. Those who
bought within the last 155 days are now in the money. They are
likely holding and expecting more gains in the coming sessions
before realizing profits. In the past, whenever the average cost
basis is surpassed, CryptoQuant analysts say prices tend to rise by
over 30%. Feature image from DALLE, chart from TradingView
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