Based on the latest metrics, exchanges have seen a large outflow of bitcoins, which in most cases is a strong signal, that holders really want to hold and not trade.
Usually these things happen right before the price move UP. Will this time be an exception or confirmation of such an observation for many previous years?
Bitcoin has scared investors this week as it descended to $44,000. Earlier, the flagship cryptocurrency bounced off support at $45,000 and closed the gap to $48,000. However, bulls ran out of steam, challenging the run-up to $50,000. A correction from this failed attempted gradually slid to $44,000 by Thursday.
Bitcoin Price Uptrend Back On Course
BTC is trading slightly above $47,000 at the time of writing. Buyers are keen on securing higher support as their focus shifts to $50,000. The 200-day Simple Moving Average (SMA) is in line to offer the much-needed support.
On the upside, Bitcoin must crack the barrier at $48,000 to clear the path toward $50,000. More buy orders are expected as investors acclimate to BTC trading above $50,000. Realize that the Relative Strength Index (RSI) currently eyes the overbought area following a canceled move to the midline. As the RSI closes the gap to 70, the bullish grip on the price will intensify.
It is essential to realize that a sell signal from the Moving Average Convergence Divergence (MACD) could be nullified soon as the 12-day EMA returns above the 26-day EMA. Perhaps trading above $48,000 will cement the bulls’ influence in the market, setting the pace for further northbound price action.
Meanwhile, the bullish outlook comes after Bitcoin exchange outflows soared massively. In just 30 days, crypto holders have drawn 111,000 BTC from exchange wallets. Drawing from exchanges suggests that investors have a long-term plan to hold. Will Clemente term it as “one of the sharpest drops of exchange inventories in Bitcoin’s history.”
Exchanges down 111,033 BTC in the last 30 days. One of the sharpest drops of exchange inventories in Bitcoin’s history. pic.twitter.com/SjHVzOV7z2
— Will Clemente (@WClementeIII) August 18, 2021
Glassnode, a renowned on-chain analytics platform, recently confirmed the massive outflows running through August.
“Bitcoin exchange flows have returned to a dominance of outflows through August as investors withdraw $BTC.
The market has transitioned through a number of phases of exchange flow dominance over the last year, with outflow dominance last seen in late 2020.”
Bitcoin Intraday Levels
Spot rate: $47,100
Trend: Bullish
Volatility: Growing
Resistance: $48,000
Support: The 200 SMA and $44,000
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