United

Bitcoin

Parallel

James

Bitcoin withdrawals from exchanges are happening at a pace we haven’t seen in years, indicating a bustling activity that could signal a bullish future for the cryptocurrency. As BTC’s price teeters on the brink of surpassing all-time highs, a closer look at the numbers reveals a trend reminiscent of 2021, a year marked by significant financial movements within the crypto space. James Van Straten, a keen observer and research analyst at CryptoSlate, brought attention to this phenomenon and the massive amounts of Bitcoin being withdrawn from exchanges on March 3.<a href="https://cointelegraph.com/news/bitcoin-metric-bull-move-up-to-1-900-btc-price-gains" rel="noopener noreferrer nofollow" target="_blank"> </a>
The data, sourced from Glassnode, shows that on the first day of March, $2 billion worth of BTC was withdrawn from exchanges. Van Straten’s reaction, “I don’t think I’ve quite seen anything like this before,” shows the rarity of this event. The total withdrawals on that Friday soared to over $2.3 billion, marking one of the largest outflows in more than half a decade. Such movements tells us that while most buyers might still be on the sidelines, the undercurrents within the Bitcoin marked are strong, with significant amounts of BTC reserves being pulled out.
Interestingly, these withdrawals have drawn comparisons to the notable outflows observed on June 28–29, 2021, periods that also witnessed record withdrawals. The narrative further unfolds as Van Straten points out the involvement of <a href="https://www.cryptopolitan.com/biden-govt-shutdown-cause-us-economy-crash/" data-type="post" data-id="474507" rel="noopener noreferrer nofollow">United States</a> spot Bitcoin exchange-traded funds (ETFs), which contributed to the movement, except for approximately $200 million that was directed to the custodian Coinbase Pro. Binance and Coinbase were the primary platforms experiencing these outflows, with Binance seeing about $400 million and the remaining balance being attributed to Coinbase. The analyst noted that Binance’s outflows were particularly intriguing since they were not connected to ETF activities.
Glassnode’s insights reveal that the total Bitcoin assets available across major trading platforms dipped to 2,286,347 BTC ($142.5 billion) as of March 2, reaching its lowest point since March 2018 when Bitcoin’s value was just around $8,000. This depletion of Bitcoin reserves on exchanges is a clear signal of a shifting landscape within the cryptocurrency market.
Parallel to the decreasing Bitcoin reserves on exchanges, there’s a noticeable shift in the market composition that indicates an influx of new Bitcoin investors. Analysis from CryptoQuant highlighted changes in the ages of unspent transaction outputs (UTXOs), showing a rise in activity among “younger” coins and a reawakening of “older” coins that had been dormant for six months or more. This trend points to a growing interest from new ‘individual’ investors, potentially setting the stage for a proper bull run.
Adding to the bullish sentiment is the potential for Bitcoin to reach $180,000, a projection based on historical gains and the current market momentum. Caleb Franzen, founder of Cubic Analytics, identified a rare bull signal through the Williams%R Oscillator on three-year timeframes, marking only the fourth occurrence in Bitcoin’s history. This oscillator, a tool for measuring the strength of Bitcoin’s price trends, has previously heralded the early stages of bull markets, with signals appearing in 2013, 2016, and 2020. Although past performance is not indicative of future results, the consistency of these signals in marking bullish phases cannot be overlooked.
Furthermore, the Relative Strength Index (RSI), another indicator used to evaluate the momentum of price movements, has shown signs of Bitcoin entering overbought territory on daily timeframes, a condition often associated with the most vigorous parts of bull markets. The monthly RSI readings, too, reflect an optimistic outlook, entering the overbought zone and hinting at the sustained momentum behind Bitcoin’s recent price surge.

Exchanges witness unprecedented massive Bitcoin daily withdrawals

Cryptopolitan_News

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