Bitcoin Exchange Outflows Hit Yearly High Could This Bring $70,000 Back?
The recent dip in Bitcoin price below $60,000 and then below $50,000 may be reversing, according to purchasing tendencies. Whales, wealthy investors, have been taking advantage of the price drop to increase their crypto holdings.
Bitcoin addresses have withdrawn over $1.7 billion from exchanges, the highest weekly outflow in over a year.
Bitcoin Holder Accumulation Trend
In the last week, Bitcoin addresses have slowly accumulated the currency, according to IntoTheBlock on-chain statistics. The analytic platform's netflow data highlights this data, which helps predict cryptocurrency price changes. A startling $1.7 billion more BTC has been removed from exchanges than deposited, indicating a major shift.
BTC exchange outflows totaled $1.7B last week, the most in over a year.
This outflow is usually viewed as an indication that investors are holding onto their Bitcoin for the long term, reducing the quantity available for sale on exchanges.
What's the Price Impact?
Bitcoin fell below $50,000 again last week due to ongoing investment dynamics and volatility. This sharp decline was Bitcoin's first below $50,000 in six months. However, the price drop allowed crypto aficionados to buy additional BTC at a six-month low. This caused other traders to purchase BTC, which helped avoid additional falls.
Bitcoin trades at $61,228. TradingView chart
A decrease in Bitcoin on exchanges might affect the market. Less coins for sale may raise purchasing pressure, raising prices if demand stays stable or rises. Bitcoin is now at $60,989, having found support at $60,000.
Given the positive mindset, this purchasing pressure may propel Bitcoin to the difficult $70,000 price level. The path to $70,000 has four obstacle levels: $63,730, $65,510, $67,350, and $69,150.
