Bullish signal: due to massive outflow of BTC, exchanges balances falls to 2018 levels
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This week they were BTC moved from crypto exchanges, and not in very small amounts, which led to a decrease in balances. According to analytics service provider Glassnode, BTC balances in the bushes have fallen to their lowest levels since the deep crypto winter at the end of 2018.
Analyst Will Clemente observed this metric, with two more large outflows in the last 48 hours.
“Two huge outflows have come: one worth 23,530 BTC and another worth 40,181 BTC.”
BTC balances on crypto exchanges are falling
When BTC leaves centralized crypto exchanges, it is usually considered a bullish sign. The asset can be transferred to a custody or offline wallet or can be invested in DeFi. Conversely, when there are large inflows on the stock market, it is considered bearish as investors prepare for liquidation.
As the chart above shows, many BTCs moved to the stock market in April and May, reversing the trend. In April, the asset reached its all-time high of $ 64,800 and markets have been declining ever since. The massive exodus of BTC from the exchanges could signal a further shift up and an improvement in market sentiment.
Whales move BTC
This week, the Whale Alert blockchain and large transaction detector detected nearly 50 transactions worth a total of 465,000 BTC worth an incredible $ 18.5 billion at current prices. Bybt and CryptoQuant also revealed that this week saw the highest one-day coin outflow in at least a year, with 57,000 BTC leaving the stock market in 24 hours.
It is not clear to which entities these addresses belong or where the assets are moved, but the formula is clear – BTCs are withdrawn from stock exchanges.
BTC price outlook
BTC has crossed the psychological level of resistance of $ 40,000 three times in the last few days, but has failed to move higher. YouTuber analyst and crypto Lark Davis pointed out that BTC had just closed the ninth day of green candles in a row, but warned that red was approaching.
A Pentoshi analyst also thinks there will be a slowdown soon:
“I think the market has to go down to a higher low before going up.”
