bitcoin is holding steady at the time of writing, hovering above immediate support levels and inches away from reclaiming the all-important local liquidation line around $66,000. While the broader crypto community is hoping for buyers to step in and push prices higher, there are exciting developments that support this outlook.
Billions of btc withdrawn from exchanges
According to stock market data x.com/Woo_Minkyu/status/1813824597986587094″ target=”_blank” rel=”nofollow”>shared According to an x analyst, btc holders are increasingly withdrawing their coins from exchanges.
On July 5, as prices plummeted, sending the world’s most valuable currency close to $50,000, a staggering $3.8 billion worth of btc was moved off exchanges.
Once this happened, prices quickly recovered, rising from a low of $53,500 to $65,000 recorded earlier this week. Although prices have moved horizontally above $62,500 recently, more btc is being withdrawn. On July 16, btc holders withdrew another $3.4 billion worth of the currency.
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Although there is no clear The impact on prices, if past performance is any guide, is likely to see prices rise slightly as they did after the crash to $53,500.
Typically, analysts interpret currency outflows as a positive for the price. Whenever coin holders transfer assets to non-custodial wallets, they want to take control of their coins. Therefore, they may not be willing to sell them.
Their decision helps support prices, as they won’t sell on demand if they want to, as they would on cryptocurrency platforms like Binance or Coinbase. Also, with less btc available on exchanges, bulls tend to benefit due to increased scarcity.
Is bitcoin preparing to break above $72,000 again?
Beyond this development, another analyst points out that the realized profit and loss ratio metric has x.com/AxelAdlerJr/status/1813835604594938267″ target=”_blank” rel=”nofollow”>fallen and is at multi-month lows. The metric is used to gauge market sentiment, primarily influenced by gains and losses at any point in time.
This decline suggests that investors who wanted to exit at the highs have already booked profits. For now, traders should wait for these indicators to move higher, perhaps to multi-month highs, ideally above $72,000 and $74,000, before profit-taking resumes.
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bitcoin also has x.com/cryptoquant_com/status/1813838761962140122″ target=”_blank” rel=”nofollow”>regenerate Its average cost basis for short-term holders (STH) as prices recover above $62,000. Those who bought in the past 155 days are now in the money. They are likely to hold their positions and wait for more gains in the coming sessions before taking profits.
In the past, whenever the average cost basis was surpassed, CryptoQuant analysts said prices tended to increase by more than 30%.
Featured image by DALLE, chart by TradingView
