Bitcoin Revisits $44k As Exchange Outflows See Uptick
January 13 2022 - 2:00PM
NEWSBTC
Bitcoin has enjoyed some uptrend over the past day as the crypto
once again visits the $44k price level. On-chain data suggests that
an uptick in exchange outflows may be behind the move. Bitcoin
Exchange Outflows Observe A Spike In The Past Couple Of Days As
pointed out by an analyst in a CryptoQuant post, the BTC exchange
outflows have showed raised values recently. The “all exchanges
outflow” is an indicator that measures the total amount of Bitcoin
exiting wallets of all exchanges. When the value of the metric goes
up, it means more BTC is currently exiting exchanges. Such a trend
has usually been bullish as holders usually withdraw their coins to
personal wallets for hodling purposes. Prolonged large outflows can
be a sign of whale accumulation. On the other hand, when the
indicator’s value stays low, it implies not many investors are
moving their Bitcoin off exchanges at the moment. This trend can be
bearish if the opposite metric, the inflow, spikes up. This is
because holders usually deposit to exchanges for withdrawing to
fiat or for purchasing altcoins. Related Reading | Bitcoin
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Now, here is a chart that shows the trend in the Bitcoin all
exchanges outflow indicator over the past year: The indicator's
value seems to have spiked up | Source: CryptoQuant As you can see
in the above graph, the value of the Bitcoin outflow has shown an
uptick recently. This means that a large amount of withdrawals has
taken place over the past couple of days. Related Reading
| SOPR Shows Bitcoin Holders Continue To Sell At A Loss,
Similar To May-June 2021 According to the quant, this trend might
show that the $40k price level is important to some investors.
Whenever the crypto approaches a support level, outflow spikes like
these usually occur as holders are keen to buy more as Bitcoin’s
value dips to such levels. BTC Price At the time of writing,
Bitcoin’s price floats around $43.8k, up 2% in the last seven days.
Over the past month, the crypto has lost 12% in value. The below
chart shows the trend in the price of BTC over the last five days.
BTC's price seems to have finally shown some upwards momentum |
Source: BTCUSD on TradingView After weeks of trending downtrend,
Bitcoin finally seems to have shown some solid movement up as the
crypto broke past the $44k mark several times in the past day. The
move may have been fueled by the recent uptick in the exchange
outflows. It’s unclear at the moment if this is the rally that will
help the crypto escape from the $40k to $45k range. Nonetheless,
it’s some upwards momentum for the coin at last. Featured image
from Unspash.com, charts from TradingView.com, CryptoQuant.com
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