Bitcoin broke above $38,000 last week, but has struggled to gain ground above the price level. Despite this, the asset’s price continues to show signs of strength despite corrections in many cryptocurrencies.
Bitcoin investors appear to be gearing up for action with an interesting time to pull out of exchanges. In the last two weeks, a lot of money has moved from exchanges, as shown by on-chain data. In the last two weeks, nearly 25,000 BTC worth over $1 billion have been withdrawn from major crypto exchanges.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 trigger a resumption of the Bitcoin bull market, among other current factors in the crypto industry.
Bulk Exchange Transfer
Bitcoin broke above $38,000 last week but has struggled to gain ground above the price level. Despite this, the asset’s price continues to show signs of strength despite corrections in many cryptocurrencies.
Data from CoinMarketCap shows that Bitcoin is up 3.17% in a 7-day period. Data from crypto analytics platform Glassnode indicates that bitcoin bulls are accumulating for the long term in anticipation of higher prices.
Crypto analyst Ali Martinez noted this bullish accumulation pattern in a post on his social media platform They have abandoned the exchanges in the last two weeks. When bitcoin leaves exchanges, it usually means that investors hold it for the long term.
A large portion of this currency outflow can be attributed to Binance. The cryptocurrency exchange and its former CEO, Changpeng Zhao (CZ), have recently come under attack from US regulators, prompting investor withdrawals in recent days.
According to data from CryptoQuant, Binance’s Bitcoin reserves have dropped by more than $200 million since CZ resigned as its CEO.
Are Bitcoin Bulls Preparing for a Rise Past $38,000?
Withdrawals from exchanges are generally a good phenomenon for crypto assets, as they reduce the number of cryptocurrencies available for sale. The more Bitcoin leaves exchanges, the tighter the supply becomes, which could drive the price up.
Prominent crypto analysts have noted that Bitcoin’s fundamentals have never been stronger. The past few months have seen many bullish price predictions as investors continue to wait for the approval of Bitcoin spot ETFs in the US and the upcoming Bitcoin halving.
Several Bitcoin spot ETF applications are under review, with many awaiting approvals in late 2023 or early 2023. According to blockchain analytics firm Glassnode, these spot ETFs have the potential to generate an inflow of $70 billion. of dollars in Bitcoin.
Bitcoin has broken through several price resistances since mid-October. The next major resistance level would be $38,000. Breaking that could really ignite the bulls and send Bitcoin on a run to $40,000 or more.
Bitcoin Buyers Give Bears No Room to Maneuver
Data from Cointelegraph Markets Pro and TradingView showed a typically stable weekend for Bitcoin, with classic volatility yet to come as the weekly close approached.
After setting new 18-month highs in recent days, some argued that the largest cryptocurrency was showing encouraging signs for bullish continuation; Among them was popular trader and analyst Credible Crypto, who saw buyers absorbing any selling volume near local highs.
Coupled with open interest (OI) in derivatives markets remaining low and spot demand remaining stable, the stage could be set for the next move higher.
Credible Crypto concluded that even its previous forecast of a return to $36,900—just a 2.1% drop from the current spot price—may not come true.
By Leonardo Perez