Did Bitcoin Price Find the Bottom? Data Dropping to the Lowest Level in 8 Years Spreads Hope! - Coin Bulletin

The withdrawal of Bitcoin from exchanges indicates a decrease in selling pressure and sets a positive ground for long-term price increase.

Bitcoin continues to withdraw from exchanges in recent weeks, indicating a possible decrease in selling pressure.

According to data shared by a writer of the on-chain data and analysis platform CryptoQuant, the amount of Bitcoin sent to exchanges has dropped to daily levels of 30,000 in recent weeks. This indicates the lowest entry level seen since 2016. For comparison, the average for the last 10 years is 90,000 Bitcoin per day, while the highest entry level in this cycle was 125,000 Bitcoin recorded during the period when BTC reached a record price of $66,000. Users not sending their Bitcoins to exchanges generally prefer to store these assets in their personal wallets and refrain from selling. This suggests that potential selling pressure may decrease.

The Netflow-to-Reserve Ratio stands out as a metric that measures the ratio of net inflows/outflows to total reserves on exchanges. The negative values of this ratio indicate a weight towards net outflows from exchanges, revealing that Bitcoin is being withdrawn from exchanges. The most significant negative values were observed during the end of bear markets, when savvy investors made heavy purchases at the $17,000 level.

Investors Stay Away from Selling

This decrease in the amount of Bitcoin withdrawn from exchanges indicates that investors are reducing selling pressure and holding their BTC for long-term accumulation. This trend could create a lack of liquidity in the market, but it could also provide a more solid foundation for price movements. This trend in the Bitcoin markets could be a harbinger of positive price movements in the long run.

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