Bitcoin’s Bullish Signals: Exchange Outflows Surge as Price Consolidates Under $65,000
Bitcoin (BTC) continues to show strength in the cryptocurrency market, with its price hovering around $63,911 as investors increasingly opt
Bitcoin (BTC) continues to show strength in the cryptocurrency market, with its price hovering around $63,911 as investors increasingly opt for self-custody solutions. The latest data reveals interesting trends in both on-chain metrics and market sentiment, pointing to potential bullish momentum for the leading digital asset.
Bitcoin Exchange Reserves Plummet to Record Lows
According to data from CryptoQuant, Bitcoin reserves on centralized exchanges have dropped to an all-time low of 2,666,717 BTC as of October 13th. This figure represents a significant decline from the peak of 3,361,854 BTC recorded on June 8, 2022. The trend is mirrored in Ethereum (ETH) reserves, which have also hit an all-time low of 18.7 million ETH.
This exodus from centralized platforms indicates a growing preference among investors for self-custody solutions. As more crypto enthusiasts choose to hold their assets rather than keep them on exchanges, it creates a sense of scarcity that could potentially strengthen Bitcoin’s value over time.
BTC/USD Technical Analysis Points to Potential Breakout
Bitcoin’s price action has been consolidating in recent days, with the asset trading between $62,000 and $63,000. However, technical indicators suggest that a breakout may be imminent:
- A short-term declining channel has formed on the hourly chart, with resistance at $63,000.
- The price is currently trading above both $62,000 and the 100-hour Simple Moving Average, indicating bullish sentiment.
- Key resistance levels to watch include $63,200 and $63,500. A clear move above these levels could trigger further gains towards $64,500 and potentially $65,000.
On the downside, support levels are established at $62,250 and $62,000. A break below these levels could lead to a retest of the $61,150 zone.
Institutional Interest Remains Strong
Despite some volatility in early October, spot Bitcoin ETFs have returned to positive inflows. Data from SoSoValue shows that US-based spot Bitcoin ETFs recorded over $300 million in net inflows over the past week. This resurgence in institutional interest is particularly noteworthy given the bearish sentiment that characterized the first week of Q4 2024.
Fidelity’s FBTC led the charge with inflows of $117.10 million, followed by Ark & 21Shares ARKB with $97.58 million. The total net assets of the spot Bitcoin ETF market now stand at $58.66 billion, representing 4.71% of Bitcoin’s total market capitalization.
As Bitcoin continues to outperform other asset classes in terms of risk-adjusted returns, analysts remain optimistic about its long-term prospects. Greg Cipolaro, Global Head of Research at NYDIG, noted that “Bitcoin ranks favorably compared to nearly every asset class on every metric over every time frame,” challenging the notion that its volatility outweighs its performance.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals