Bitcoin amount (Bitcoin) picked up momentum on Oct. 18, suggesting selling pressure is waning, which could help BTC price avoid a deeper correction below $18,000.
Bitcoin Forms a “Bear Market Floor”
More than 37,800 BTC left cryptocurrency exchanges on October 18, according to data tracked by CryptoQuant. This marks the largest daily outflow of Bitcoin since his June 17th, when a trader withdrew around 68,000 BTC from the exchange.
Additionally, over 121,000 BTC, or about $2.4 billion at current prices, have left the exchange in the last 30 days.
a Rapid increase in Bitcoin outflow from exchanges It is usually seen as a bullish signal as traders remove the coins they want to keep from the platform. Conversely, a surge in Bitcoin inflows to exchanges is usually viewed as bearish given that supply could quickly sell off the increase.
for example, bitcoin hit bottom When the outflow from the exchange reached around 68,000 BTC on June 17th, it was around $18,000 locally. The cryptocurrency price rose towards $24,500 in the following weeks.
This time, a significant increase in Bitcoin outflows from exchanges has surfaced as the downward trend in BTC price pauses within the $18,000-$20,000 range.
Interestingly, several on-chain metrics show that Bitcoin whales, entities above 1,000 BTC, are mostly behind the coin’s strong foothold near the $18,000 level.
For example, Cohort’s Cumulative Trend Score shows that wallets holding between 1,000 BTC and 10,000 BTC have been “aggressively” accumulating Bitcoin since late September.
Additionally, the whale’s on-chain behavior shows that the whale recently withdrew 15,700 BTC from the exchange, the largest outflow since June 2022.
“Bitcoin’s price has recently shown surprising relative strength in a highly volatile traditional market environment.” I got it Glassnode added in their Weekly Review published on October 10th:
“Several macro indicators point to Bitcoin investors establishing a potential bear market bottom, with many similarities to previous cycle lows.”
Positive BTC inflow
Meanwhile, Bitcoin-based investment vehicles have also seen inflows for the fifth consecutive week. according to To CoinShares weekly report.
About $8.8 million was deposited into Bitcoin funds in the week ending October 14, bringing the net capital received by these funds to $291 million year-to-date. James Butterfill, head of research at CoinShares, said the influx implied a “genuine neutral sentiment among investors” towards Bitcoin.
Conversely, the technical outlook for Bitcoin remains in favor of the bears, forming a pattern that appears to reverse the cup and handles on the three-day chart.
Related: Bitcoin price ‘easily’ to reach $2 million in 6 years – Larry Leppard
An inverted cup and handle pattern is formed when price goes through a crescent rally and correction followed by a non-extreme upward retracement. It resolves when the price falls below the neckline by the distance between the peak of the cup and the neckline.
If the cup and handle were reversed, Bitcoin could drop to $14,000. play A 30% drop from the aforementioned or current price levels according to previous reports.
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