According to recent on-chain data from Cryptoquant, Bitcoin has seen its largest outflow from exchanges in nearly two years.
This substantial outflow, the biggest since November 2022, points to a significant reduction in the amount of Bitcoin held on exchanges, with a sharp drop in exchange reserves to 2.57 million BTC by September 29. This trend suggests decreased selling pressure, making investors optimistic about a potential price recovery.
Bitcoin exchange outflows at highest level in 23 months – CryptoQuant
Bitcoin outflows suggest reduced sell pressure
The latest data highlights a steady decline in Bitcoin exchange reserves due to large withdrawals. As more Bitcoin is moved off exchanges, the likelihood of immediate sell-offs diminishes, easing the selling pressure that has recently affected the market. Analysts believe that many investors are holding onto their Bitcoin in anticipation of future price gains, refraining from selling at current levels.
BTC Miners have gradually reduced exchange inflows – CryptoQuant
With the reduction in exchange inflows and growing sentiment that Bitcoin could appreciate, the market may be setting up for a potential rally. This has helped the cryptocurrency regain momentum, with its price climbing 1% over the past 24 hours to $61,300. Concerns about Bitcoin dropping below the critical $60,000 support level have subsided, further boosting investor confidence.
Optimism grows for ‘Uptober’
The term “Uptober,” a popular reference to Bitcoin’s historical performance in October, returns as the cryptocurrency recovers from early-month declines. Crypto analyst Axel Adler Jr. had previously expressed confidence in a bullish October despite a rocky start, with Bitcoin losing around 7% of its value.
Adler noted that while previous months had seen notable drops in Bitcoin, October remains on track to recover. He emphasized the importance of limiting the supply on exchanges to allow Bitcoin to form a new bullish trend. Specifically, Adler suggested that reducing the supply by 80,000 BTC on exchanges could help facilitate the rally.
Sentiment shift signals possible rally
Trader sentiment has markedly shifted over the past week. According to Santiment data, the mood has moved from high excitement to near fear, uncertainty, and doubt (FUD) levels. While this might seem like downbeat news, some analysts argue it could be a positive signal. Markets often move contrary to crowd expectations, and cooling sentiment may set the stage for a price rebound.
Adding to the bullish outlook, crypto analyst Ali Martinez pointed out a rise in the Bitcoin Taker Buy/Sell ratio on the OKX exchange. This increase indicates heightened buying activity, reinforcing the belief that Bitcoin may be preparing for an upward move. With reduced sell pressure, shifting market sentiment, and signs of aggressive buying, Bitcoin could be positioned for a strong rally in October. Investors are watching closely, hoping the positive trend continues throughout the month.
The post Largest Bitcoin Outflow Since 2022 Fuels Hopes for October Rally first appeared on Coinfea.
