Bitcoin Exchange Outflows Near 100K BTC as Bitcoin Goes Bullish
Outflows from Bitcoin exchanges have approached 100K BTC for the second time in March 2022. The phenomenon usually occurs when Bitcoin recovers from downside pressure, and strong buying interest follows.
A Bitcoin Bullish Cross-Over
On-chain data provider Glassnode explains, “Bitcoin exchange outflow volume recently hit a rate of 96.2k $BTC per month. Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions throughout history, with most being after the March 2020 liquidity crisis”.
According to BTC Archive, bitcoin weekly MACD just confirmed a bullish cross-over. Over the weekend, Bitcoin (BTC) showed some solid consolidation following a good run-up last week. Bitcoin’s $44,500 resistance has become strong support in the past few days and hovered just above $45,300.
If Bitcoin surges above the 200-day moving average (DMA), i.e. $48,300, it will set a bullish trend upwards. The total number of Bitcoins issued is 19 million, and there are only 2 million left to mine. In addition, the Glassnode data shows that Bitcoin user growth is exceeding supply issuance by a wide margin. Due to this demand-supply gap, price surges to the north are likely to continue.
When anticipating a price increase, investors generally assume direct custody of coins. A continuous outflow of cryptos from exchanges suggests less selling pressure in the market and the potential for a rapid rebound. Since there is less supply, the price of Bitcoin is expected to rise over the next few years. However, before this happens, the asset needs to overcome its current resistance level.
When it comes to demand and supply, illiquid supply increases once more. 63.15 percent of total Bitcoin production has remained illiquid for the previous year, falling 0.3 percent shy of the new all-time high. On April 3, renowned analyst Will Clemente noticed this astounding fact.
Altcoins have been Surging
BTC has surged by more than 17 percent in the previous 30 days due to a variety of geopolitical events and sentiments. BTC had conflicting sentiments last week, trading in a price range of $45,800 to $47,400. Typically, altcoins also decline to abide by BTC, but this week has been different.
STEPN (GMT), Zilliqa (ZIL), Aave (AAVE), and Waves (WAVES) have all increased by more than 40% in the last seven days, despite Bitcoin falling by more than 4%. According to Santiment, crypto enthusiasts are clamoring for alt season, as seen by the statistics.
STEPN was the big winner last week, with its price increasing by more than 200 percent. ZIL gained roughly 52% in the previous seven days, while WAVES and AAVE gained 45 and 42 percent, respectively.
Meanwhile, Ethereum — the second-largest crypto by market cap — has been gaining price dominance over Bitcoin. “On Friday, the $ETH / $BTC price ratio of 0.074762 came within millimeters of an 8-week high of 0.074878,” Santiment noted in a tweet.
Bitcoin Conference 2022
The Bitcoin conference 200 is scheduled from April 6 to 8. This event is regarded as one of the most significant events in the crypto industry, and the market is gearing up. There has also been a lot of speculation regarding the possible integration of Bitcoin payments into Apple Pay. It is just the market’s assumption, as the company is scheduled to make a significant announcement this week.
It’s widely believed that an official announcement regarding the launch of Bitcoin in the US would boost the adoption rate of the digital currency. Since Apple Pay has a considerable following, it’s expected that other tech companies would also join the Bitcoin bandwagon.
