Commodities

Bitcoin shows the strongest bullish signal in 3 weeks

After Bitcoin failed to overcome the $ 40,000 hurdle, all eyes were on the king’s cryptocurrency. At 10:05 PM GMT, Bitcoin was trading at $ 35,785, up 5.97% over the past 24 hours. At the time of going to press, the outflows from the exchanges were high.

It appears that 15,000 BTCs have flown out of Coinbase at the price level of $ 32,400. Such significant outflows signal a bullish shift in the price rally as the pioneering cryptocurrency transactions have moved into custody wallets that only support inbound transactions. These wallets do not support withdrawals. This can mean that these transactions represent OTC transactions by institutional investors. These deals remain the strongest bullish signal in the past three weeks.

Ki Young Ju noted this signal on Twitter:

Massive Coinbase outflows. 15k $ BTC at 32.4k looking at the TX it went to custody wallets that only have inbound transactions. These are likely to be OTC deals from institutional investors. I believe this is the strongest bullish signal.

These metrics are critical to understanding the direction of Bitcoin price action. Coinbase outflows are important and have been found to be useful in understanding market sentiment as there is no specific way to estimate the OTC transaction volume from institutional investors. Regardless, such on-chain indicators can be helpful in estimating OTC deals.

This shows that institutions are still buying bitcoin. This is a positive sign as outflows mean foreign exchange reserves are falling and scarcity is at stake.

Based on data from Glassnode, there were outflows of $ 1.6 billion versus inflows of $ 900.6 million. While the headlines may be showing DEFI and ETH, Bitcoin is still investing in. The dominant position of the cryptocurrency pioneer remains at 62.3%.

As outflows from the exchanges increase, a bullish rally could emerge on the price and trade volume chart. The price recovery could also be above $ 35,000.

Visa’s entry into the market is important

Another interesting development is the preparation of Visa to handle all digital currency assets. This could increase demand and volatility even further. Visa identifies cryptocurrencies in two categories: digital currencies such as Bitcoin and Ethereum; and fiat-backed currencies like stablecoins. This means that investment inflows into Bitcoin may continue uninterrupted.

It should be noted that institutional investments give Bitcoin an upward trend in the short term. This is associated with high outflows from stock exchanges and increasing demand.

If you have any questions and comments about Bitcoin today, use the form below to reply.

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