$740M in Bitcoin exits exchanges, the biggest outflow since June's BTC price crash

2 years ago

The magnitude of Bitcoin (BTC) flowing retired of cryptocurrency exchanges picked up momentum connected Oct. 18, hinting astatine weakening sell-pressure that could assistance BTC terms debar a deeper correction beneath $18,000.

Bitcoin forming a "bear marketplace floor"

Over 37,800 BTC near crypto exchanges connected Oct. 18, according to information tracked by CryptoQuant. This marks the biggest Bitcoin regular outflow since June 17, connected which traders withdrew astir 68,000 BTC from exchanges.

A spike successful Bitcoin outflows from exchanges is typically seen arsenic a bullish signal because traders region the coins from platforms that they privation to hold. Conversely, a leap successful Bitcoin inflows into exchanges is typically considered bearish fixed that the proviso instantly disposable for selling increases.

For instance, Bitcoin bottomed out locally astatine astir $18,000 erstwhile its outflows from exchanges reached astir 68,000 BTC connected June 17. The cryptocurrency's terms rallied toward $24,500 successful the pursuing weeks.

This time, the monolithic uptick successful Bitcoin outflows from exchanges surfaces arsenic the BTC terms downtrend pauses wrong the $18,000-$20,000 range. Interestingly, Bitcoin whales person been chiefly down the coin's beardown foothold adjacent the $18,000 level, according to respective on-chain metrics.

For instance, the Accumulation Trend Score by Cohort notes that the wallets holding betwixt 1,000 BTC and 10,000 BTC person been accumulating Bitcoin "aggressively" since precocious September.

In addition, whales' on-chain behaviour shows that they person precocious withdrawn 15,700 BTC from exchanges, the largest outflow since June 2022.

"Bitcoin prices person shown singular comparative spot of late, amidst a highly volatile accepted marketplace backdrop," noted Glassnode successful its play reappraisal published Oct. 10, adding:

"Several macro metrics bespeak that Bitcoin investors are establishing what could beryllium a carnivore marketplace floor, with galore similarities to erstwhile rhythm lows."

Positive BTC money inflows

Meanwhile, Bitcoin-based concern vehicles person besides seen the 5th week of accordant inflows, according to CoinShares weekly report.

About $8.8 cardinal entered Bitcoin funds successful the week ending Oct 14, which pushed the nett superior received by these funds to $291 cardinal connected a year-to-date timeframe. CoinShares caput of research James Butterfill said the inflows connote a "net neutral sentiment amongst investors" toward Bitcoin.

On the flip side, Bitcoin's method outlook remains successful favour of the bears, fixed the enactment of what appears to beryllium an inverted-cup-and-handle signifier connected its three-day chart.

An inverted-cup-and-handle signifier forms erstwhile the terms undergoes a crescent-shaped rally and correction followed by a little extreme, upward retracement. It resolves aft the terms breaks beneath its neckline and falls by arsenic overmuch arsenic the region betwixt the cup's highest and neckline.

Bitcoin's terms could autumn toward $14,000 if the inverted cupful and grip play retired arsenic mentioned, successful accordance with erstwhile reports, oregon a 30% driblet from existent terms levels.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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