Bitcoin investors seem to be gearing up for action with an interesting timing of withdrawal from exchanges. Serious money has been on the move from exchanges in the past two weeks, as shown by on-chain data. Over the last two weeks, nearly 25,000 BTC worth over $1 billion have been withdrawn from major crypto exchanges.
The question that arises now is whether or not this would set off a resumption of the bull run for Bitcoin amongst other current factors in the crypto industry.
Massive Transfer Off Exchanges
Bitcoin crossed $38,000 last week but has struggled to gain a footing above the price level. Despite this, the price of the asset is still showing signs of strength despite corrections in many cryptocurrencies. Data from CoinMarketCap shows Bitcoin is up by 3.17% in a 7-day timeframe.
Data from crypto analytics platform Glassnode indicates that bitcoin bulls are accumulating for the long haul in anticipation of higher prices. Crypto analyst Ali Martinez noted this bull accumulation pattern in a post on his social media platform X.
According to the analyst, the Bitcoin balance on exchanges metric from Glassnode shows that around 25,000 BTC worth nearly $1 billion have left exchanges in the past two weeks. When bitcoin leaves exchanges, it usually means investors are holding for the long term.
#Bitcoin | Around 25,000 $BTC have been withdrawn from known #crypto exchange wallets in the last two weeks, worth nearly $1 billion! pic.twitter.com/RLwV3iOR7b
— Ali (@ali_charts) November 25, 2023
A large part of this exchange outflow can be attributed to Binance. The crypto exchange and its former CEO Changpeng Zhao (CZ) have recently been subject to attacks from US regulators, prompting withdrawals from investors in the past few days. According to data from CryptoQuant, Binance’s Bitcoin reserves were reduced by more than $200 million since CZ’s resignation as its CEO.
Are Bitcoin Bulls Gearing Up For A Surge Past $38,000?
Withdrawals from exchanges are generally a good phenomenon for crypto assets, as they reduce the amount of cryptocurrencies readily available for sale. The more Bitcoin that leaves exchanges, the more scarce the supply becomes, which could drive the price higher.
Prominent crypto analysts have pointed out that Bitcoin’s fundamentals have never been stronger. Many bullish price predictions have come in recent months as investors continue to wait for the approval of spot Bitcoin ETFs in the US and the upcoming Bitcoin halving.
Several spot Bitcoin ETF applications are under review, with many expecting approvals in late 2023 or early 2023 According to blockchain analytics firm Glassnode, these spot ETFs have the potential of igniting a $70 billion inflow into Bitcoin.
Bitcoin has broken through several price resistances since the middle of October. The next major resistance level would be $38,000. Breaking through that could really ignite the bulls and send Bitcoin on a run up to $40,000 or higher.
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