As a seasoned crypto investor with several years of experience under my belt, I’ve witnessed countless market swings and trends that have shaped the crypto landscape. The recent developments in Bitcoin’s price action and on-chain metrics have piqued my interest, leaving me optimistic about its future trajectory.
As a researcher studying the Bitcoin market, I observe that the cryptocurrency maintains a stable position, hovering slightly above key support levels and on the verge of surpassing the critical local resistance line situated around $66,000. Despite anticipation within the wider crypto community for buyers to enter and drive prices upward, several noteworthy developments provide further evidence supporting this perspective.
Billions Worth Of BTC Pulled From Exchanges
Based on the information provided by a particular analyst on platform X, it appears that more and more Bitcoin owners are withdrawing their coins from digital exchanges.
On July 5th, as prices plummeted and brought Bitcoin’s value to just under $50,000, approximately $3.8 billion worth of the cryptocurrency was transferred out of exchanges.
After this occurrence, Bitcoin prices rebounded swiftly, climbing from a low of $53,500 as recorded earlier in the week to reach $65,000. Despite a horizontal trend hovering above $62,500 in recent times, an additional $3.4 billion worth of Bitcoin was withdrawn on July 16th.
Based on historical trends, it’s reasonable to anticipate that prices may continue to rise, despite current uncertainty about their effect on costs. As we’ve seen in the past, prices tended to increase following a drop to around $53,500.
Analysts generally view outflows from exchanges as a bullish sign for prices. When coin owners transfer their assets to personal, non-custodial wallets, it indicates they wish to maintain possession and potentially refrain from selling.
The choice not to sell Bitcoins immediately by some investors keeps prices stable. They can hold onto their coins on trading platforms such as Binance and Coinbase. Consequently, there is a decrease in the amount of Bitcoin available for sale on exchanges. This reduction in supply favors bullish traders, making scarcity a driving factor behind potential price increases.
Is Bitcoin Preparing For Another Leg Up Above $72,000?
An additional observation from another analyst is that the Realized Profit and Loss Ratio figure has dropped to levels not seen for several months. This ratio serves as a key indicator of market sentiment, primarily shaped by current profit and loss figures.
The decrease in investor activity indicates that those looking to sell at peak prices have likely already done so. In the meantime, traders should be patient and monitor these metrics as they may climb towards new highs, ideally surpassing the $72,000 and $74,000 thresholds, before profit-taking becomes prevalent once again.
Bitcoin’s price has surpassed the average purchase price for short-term investors, sitting above $62,000 currently. Individuals who bought within the previous 155 days now find themselves in a profitable position. These holders are likely to keep their investments and anticipate further growth before eventually cashing out.
Previously, when the average cost basis has been exceeded, analysts at CryptoQuant have observed prices increasing by more than 30% on average.
Read More
- CORE PREDICTION. CORE cryptocurrency
- Top gainers and losers
- SYS PREDICTION. SYS cryptocurrency
- KUNCI PREDICTION. KUNCI cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- CFG PREDICTION. CFG cryptocurrency
- Best coins for today
- DOGE PREDICTION. DOGE cryptocurrency
- THOR PREDICTION. THOR cryptocurrency
- STFX PREDICTION. STFX cryptocurrency
2024-07-18 22:35