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On Wednesday, more than 17,000 BTC worth $1.6 billion were withdrawn from centralized exchanges, marking the largest daily Bitcoin outflow since April 2024.

This significant movement is seen as a strong sign of institutional confidence in Bitcoin. According to Glassnode and CryptoQuant, the data suggests that large-scale institutional purchases are taking place, a phenomenon often interpreted as a bullish signal.

Why the Massive Bitcoin Outflow from Exchanges Is Good News — Source: Glassnode

Institutional Investors Are Buying the Dip

The massive outflow indicates that major players such as Exchange-Traded Funds (ETFs) and companies like MicroStrategy are accumulating Bitcoin and moving it into self-custody.

Andrew Dragosch, Head of Research at Bitwise, explains that whales are taking advantage of this dip to strengthen their positions.

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One of the most notable movements occurred on Coinbase, which recorded a staggering net outflow of over 15,000 BTC. This suggests that the exchange is being used for large-scale institutional purchases.

Analysts from Timechainindex.com reported that Coinbase split 20,000 BTC across four large wallets into 60 new addresses on Wednesday. This pattern often signals institutional accumulation.

Historic Bitcoin Outflow Boosts Bullish Momentum

According to CryptoQuant, the total net outflow across all crypto exchanges on Wednesday was 47,000 BTC, with 17,000 BTC withdrawn from Coinbase alone – Largest Daily Outflow.

This suggests that more investors are moving their Bitcoin off exchanges, a strategy commonly used when investors expect long-term price increases.

Binance News emphasized that this record-breaking outflow is a clear sign of institutional buying activity, further strengthening the positive sentiment around Bitcoin.

In addition to strong institutional demand, political developments also played a role in shaping market sentiment.

On Wednesday, Bitcoin briefly dipped below $96,800 during late trading hours in the U.S.. However, prices quickly rebounded after Eric Trump, son of President Donald Trump, publicly encouraged the crypto platform World Liberty Financial to make its first Bitcoin investment.

This development intensified speculation about a pro-crypto stance within the Trump family, providing a positive impulse for market dynamics.

According to CoinDesk, these institutional and political factors are fueling optimism around Bitcoin, as more major players continue expanding their positions.

Bitcoin Price Analysis & Trading Tips

Bitcoin is currently trading around $98,657, showing strong bullish momentum after breaking through key resistance levels. The price has successfully retested multiple support zones (highlighted in green), confirming an uptrend continuation. The sharp upward move indicates buying pressure, but the Relative Strength Index (RSI) at 79 suggests that BTC is approaching overbought conditions, meaning a short-term pullback could occur.

Key Levels to Watch:

Support: $97,200 – $97,600, $96,400 – $96,800
Resistance: $98,800 – $99,000 (potential breakout level)

Trading Tips

✅ Bullish Strategy (Breakout Play)

If Bitcoin breaks and holds above $98,800, the next upside target is $99,500 – $100,000.
Consider long entries on a successful retest of $98,800, confirming it as new support.
Stop-loss: Below $98,400 to minimize risk.

❌ Bearish Strategy (Pullback Trade)

If BTC fails to hold above $98,800, a retracement toward $97,600 – $97,200 is likely.
A short trade could be considered if BTC loses momentum and drops below $98,400.
Stop-loss: Above $99,000 to avoid a short squeeze.

Final Outlook

Bitcoin is showing strong bullish momentum, but traders should watch for potential resistance at $98,800 – $99,000. A confirmed breakout could lead to new highs, while failure to hold this level may result in a short-term correction before further upside.

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Madeline

I have been drawn to technology and science fiction since I was a child. Studying IT has drawn me to the world of cryptocurrencies, where I have been working since 2014. I have learned a lot since then. And I still have a lot to learn. What fascinates me most about them is that they connect so many worlds together and the possibility of free choice. Without limits.