Bitcoin Revisits $44k As Exchange Outflows See Uptick
Bitcoin has enjoyed some uptrend over the past day as the crypto once again visits the $44k price level. On-chain information suggests that an as it turns out uptick in exchange outflows may be behind the move.
Observe’s worth noting that Bitcoin Exchange Outflows It A Spike In The Past Couple Of Days
As pointed out by an analyst in a CryptoQuant submit, the BTC exchange outflows have showed raised values recently.
The “all exchanges outflow” is an indicator that measures the total amount of Bitcoin exiting wallets of all exchanges.
When the value of the exchanges goes up, it means more BTC is currently exiting metric. Interestingly, Such a trend has usually been bullish as holders usually withdraw their coins to personal wallets for hodling purposes. as a matter of fact Interestingly, Prolonged large outflows can be a sign of whale accumulation.
On the other hand, when the indicator’s value stays low, it implies not many investors are moving their Bitcoin off exchanges at the moment.
This trend can bearish if the opposite metric, thebeinflow, spikes up. This is because holders usually deposit to exchangesfor withdrawing to fiat or for purchasing altcoins.
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Now, here is a chart that shows the trend in the Bitcoin all exchanges outflow indicator over the past year:
The indicator's value seems to have spiked up | Source: CryptoQuant
As you can see in the above graph, the value of the Bitcoin outflow has shown an uptick recently. This means that a large amount of withdrawals has taken place over the past couple of days.
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According to the quant, this trend might show that the $40k price level is crucial to some investors. Whenever the crypto approaches a backing level, outflow spikes these usually occur as holders are keen to obtain morelikeas Bitcoin’s value dips to such levels.
BTC Price
At thewritingtime of from another perspective , Bitcoin’s price floats around $43.8k, up 2% in the last seven days. It’s worth noting that Over the past month, the crypto has lost 12% in value.
The below chart shows the trendofin the price BTC over the last five days.
BTC's price seems to have finally shown some upwards momentum | Source: BTCUSD on TradingView
After weeks of trending downtrend, Bitcoin finally seems to have shown some solid movement up as the crypto broke past the $44k mark several times in the past day.
Nonetheless, it’s some upwards momentum for the coin at last. The move may have been fueled by the recent uptick in the exchange outflows. It’s unclear at the moment if this is the rally that will help the crypto escape from the $40k to $45k range.
Featured image from Unspash.com, charts from TradingView.com, CryptoQuant.com
