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Although the Bitcoin price faces challenges Breaking out significantly from the $60,000 support level, recent on-chain data shows a fascinating sentiment change among Bitcoin enthusiasts. Despite the ongoing price corrections, it appears that long-term holders are undeterred. In fact, approximately 15,917 BTC, worth approximately $987 million, have been withdrawn from various cryptocurrency exchanges in the past week.
Bitcoin is leaving crypto exchanges en masse
According to one previous report from NewsBTCBitcoin’s recent dip to $60,000 can largely be attributed to the actions of short-term holders. On-chain data shows that this particular group of traders decided to exit their positions after Bitcoin’s performance fell short of expectations in early October, further increasing selling pressure. However, long-term owners have taken full advantage of this increased selling pressure. Instead of following short-term market sentiment, many long-term investors took the opportunity to add more Bitcoin to their portfolios.
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As the data shows, long-term owners appear to have benefited from the selling pressure, with many of them taking the opportunity to add to their holdings. According to data from the chain marked by crypto analyst Ali Martinez, Bitcoin reserves on cryptocurrency exchanges have been steadily declining since October 3. On that day, the total Bitcoin balance on the exchanges was 2.5825 million BTC. What is notable is that this figure was the result of several consecutive days of BTC inflows on exchanges, starting on September 28 and continuing until October 3. During this time, Bitcoin’s price fell from $66,230 to $60,047, which represents a decline of approximately 9.3%. so many traders were selling at fairs.
However, in an interesting turn of events, long-term holders have seen this influx of BTC into exchanges as an opportunity to acquire more tokens. As a result, there has been a consistent decline in the total Bitcoin balance on the exchanges since October 3. Figures show that between October 3 and the time of writing, 15,917 BTC have been withdrawn from exchanges, bringing the total Bitcoin exchange reserve to approximately 2.5667 million BTC. .
What does this mean for Bitcoin?
The outflow of BTC from exchanges is generally seen as positive for the cryptocurrency’s price, as it reduces the amount of BTC available for sale. During this outflow period, Bitcoin retested the $64,000 price level on October 7. However, it has since turned around and is approaching the $60,000 price bottom again.
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At the time of writing, Bitcoin is trading at $60,912, down 2.1% in the last 24 hours. This dip shows the interest of long-term holders and bullish investors who continue to accumulate BTC through exchanges. The responsibility now falls on the long-term holders to continue accumulating Bitcoin from the exchanges in order to do that help prevent further price falls.
Featured image created with Dall.E, chart from Tradingview.com