bitcoin Investors Strike While the Iron is Hot: A Resurgence in the Market
As the market cap of the crypto industry has soared past the $1.5 trillion milestone, it seems like bitcoin investors are gearing up for action with an interesting timing of withdrawals from exchanges. Serious money has been on the move from exchanges in the past two weeks, with nearly 25,000 BTC worth over $1 billion withdrawn from major crypto exchanges.
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 showing signs of strength amid corrections in many cryptocurrencies. Data from CoinMarketCap shows bitcoin is up by 3.17% in a 7-day timeframe.
According to crypto analytics platform Glassnode, bitcoin bulls are accumulating for the long haul in anticipation of higher prices. Crypto analyst Ali Martinez has observed a bull accumulation pattern, noting that approximately 25,000 BTC worth nearly $1 billion have left the exchanges in the past two weeks. When bitcoin leaves exchanges, it is a sign that investors are holding it for the long term.
A large part of this exchange outflow can be attributed to Binance, which has been subject to attacks from US regulators, prompting withdrawals from investors in recent days. Data from CryptoQuant indicates that Binance’s bitcoin reserves were reduced by more than $200 million since its former CEO’s resignation.
Are bitcoin Bulls Gearing Up For A Surge Past $38,000?
Withdrawals from exchanges are generally a positive phenomenon for crypto assets, reducing the amount of cryptocurrencies readily available for sale. The more bitcoin that leaves exchanges, the scarcer 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.
### News source: bitcoinist.com