Bitcoin Revisits $44k As Exchange Outflows See Uptick

Share This Post

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 Death Cross 2022: What You Need To Know About The Deadly Signal

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

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Uniswap (UNI) Poised For 45% Rally, On-Chain Metrics Confirm

The post Uniswap (UNI) Poised For 45% Rally, On-Chain Metrics Confirm appeared first on Coinpedia Fintech News In this bull run, the majority of top cryptocurrencies have already experienced notable

XRP Price Surge: Ripple Investors Who Bought XRP In Dip Are Cashing Out Profits And Pumping It Into WallitIQ (WLTQ) For Triple Gains

The post XRP Price Surge: Ripple Investors Who Bought XRP In Dip Are Cashing Out Profits And Pumping It Into WallitIQ (WLTQ) For Triple Gains appeared first on Coinpedia Fintech News The recent rally

NFT Fever Cools: Ethereum and Bitcoin NFT Sales Dive Amid Broader Crypto Growth

Non-fungible token (NFT) sales cooled off this week, slipping 93% compared to the prior period, even as the broader cryptocurrency market climbed higher NFT Market Shifts: Ethereum and Bitcoin Sales

XRP Price Prediction: XRP Soars 24%, Buy Now or Wait for Better Entry?

The post XRP Price Prediction: XRP Soars 24%, Buy Now or Wait for Better Entry appeared first on Coinpedia Fintech News XRP is leading the crypto market pump today with a 24% gain Is it a good time

Deribit Moves $783M in Ethereum To Cold Storage: A Bullish Signal for ETH?

While Ethereum seems to have begun its own major rally, the asset has recently experienced significant activity on the Deribit Options Exchange which begs the question of what it means for

Cardano Price Rumbles On, Breaks $1 For The First Time Since 2022

The cryptocurrency market has continued to sparkle in the historically bullish month of “Moonvember,” with the market leader Bitcoin setting the pace in the space However, the Cardano price