With the beginning of a bullish month of the year for crypto, Bitcoin’s price has taken a big hit due to rising tensions between Iran and Israel. Amidst this Bitcoin has seen a massive outflow from exchanges, marking the largest withdrawals since November 2022. This surge in outflows signals a strong belief among investors that Bitcoin’s price will shoot up soon.
Should you make quick changes to your strategy? Here’s what you should know.
On-chain data from CryptoQuant shows Bitcoin is experiencing its biggest exchange outflows in nearly a year. This trend is clear across several timeframes, including the 30-, 50-, and 100-day moving averages. It indicates more Bitcoin is being taken off exchanges, which could be a sign of shifting market sentiment.
When Bitcoin moves off exchanges, it usually suggests that holders are transferring their assets into cold storage, possibly with a long-term mindset. This action often points to bullish sentiment, as investors believe in Bitcoin’s price growth and prefer to hold onto their assets rather than sell them.
Understanding the Price Impact
The large amount of Bitcoin leaving exchanges could impact its price. With fewer coins available on exchanges, reduced supply might drive prices up, especially if demand stays strong.
Coinpedia has also reported that Bitcoin miners are cutting back on the amount of Bitcoin they send to exchanges. This comes after they increased their sales following the recent Bitcoin halving
Miners’ behavior often provides clues about future price movements. Historically, when miners choose to hold their Bitcoin rather than sell it, it points to a positive, or bullish, outlook for the cryptocurrency. This shift could mean miners expect Bitcoin’s price to rise in the near future.
Bitcoin is holding steady above $60,959, and it might be preparing for another rise. On the upside, the price could face resistance around $61,400, with the next major hurdle at $61,750.
Bitcoin could face resistance around $61,400. If it manages to break through this, the next significant hurdle is the $61,750 level, which aligns with the 76.4% Fibonacci retracement mark. A clear move above $61,750 could push Bitcoin higher, with $62,350 being the next major target.
However, if Bitcoin fails to clear $61,750, it could drop again. Immediate support is near $60,450, with stronger support at $60,000. If the price drops further, it could test $59,850 or even $58,800.
Are you holding onto your Bitcoin or selling it off? Share your strategy.
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