Bitcoin Sees Largest Exchange Exit in 5 Weeks; Will the price finally go up?

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As Bitcoin (BTC) trades around the $40,000 mark, well below its late March peak when it neared $48,000, many are wondering if the downtrend will continue or eventually pass. in the green and turn bullish.

One of the factors that could signal that the price of the flagship digital asset is moving in both directions is its flow from and to cryptocurrency exchanges, and Bitcoin has recently seen a massive outflow from them.

Specifically, 25,878 or $1.04 billion BTC left crypto exchanges in 24 hours, which is the biggest difference between outflows and inflows in five weeks, according to a chart. share by on-chain and social measurement platform Saniment April 14.

Source: Saniment

According to the platform’s tweet:

“Historically, large amounts of BTC exiting exchanges drive price increases within days for the trend to continue.”

In other words, if Bitcoin’s large outflow continues over the next few days, a price rally could be imminent.

Long-term optimism

Meanwhile, many are very optimistic about Bitcoin’s future, with some, like the founder of cryptocurrency lender Nexo, suggesting that its price could hit $100,000 in the next 12 months.

According to Antoni Trenchev, if a stock market “crash” occurs, it will lead the Federal Reserve to “return to easing in no time,” giving cryptocurrencies more momentum.

His opinion is close to that of Celsius Network CEO Alex Mashinsky, who thinks the crypto will do well in the recession he expects next year and advised to sell stocks and buy more Bitcoin. . As he explained:

“Year-to-date the stock market has been down but Bitcoin has actually recouped most of its losses. You saw a bifurcation, we see a split, which means bitcoin is finally starting to behave like a security asset and that’s why again I’m selling my stocks and buying more bitcoins.

bitcoin price analysis

At press time, Bitcoin is trading at $40,161, down 2.59% over 24 hours and down 8.31% from seven days prior, when its price was $43,800.

Seven-day Bitcoin price chart. Source: CoinMarketCap

The market capitalization of the largest cryptocurrency by this indicator is also registering declines and currently stands at $766.03 billion, according to data from CoinMarketCap.

Warning: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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