While Bitcoin has been upsetting investors with its long-standing downward trend, analysts say that the bad days are behind us and the expected rise will occur in the coming months.
Some data also supports the analysts' assessment. According to data from cryptocurrency analytics platform IntoTheBlock, approximately $750 million worth of Bitcoin was withdrawn from major cryptocurrency exchanges on September 10.
IntoTheBlock stated that this withdrawal was the biggest outflow since May and that the $750 million Bitcoin withdrawn from exchanges points to a potential price increase.
IntoTheBlock analyst Juan Pellicer noted that the outflows have led to positive sentiment as investors anticipate “price increases” and move their coins to private wallets.
“The $2.95 billion volume in BTC that exited exchanges on September 10 is an indication of significant institutional participation.
….Retail investors rarely move such large amounts in total. However, some of it probably came from retail.
As large amounts of BTC leave exchanges, the supply available for trading decreases. Assuming demand remains stable or increases, this supply reduction generally leads to upward price pressure.”
Bitcoin Looks Ready for a Rise!
Apart from this, CryptoQuant analyst also said that Bitcoin exchange reserves are decreasing and investors are transferring BTC to cold storage.
Stating that this situation reduces the selling pressure on BTC, the analyst said that decreasing BTC reserves and increasing stablecoin reserves potentially point to an upward trend.
The analyst noted that this situation historically preceded price increases, and that the increasing stablecoin reserves on exchanges, along with the decrease in BTC reserves, reflected strong purchasing interest and available capital as investors prepared to buy.
“The combination of decreasing Bitcoin reserves and increasing stablecoin reserves is setting the stage for a bullish price breakout. With decreasing Bitcoin supply and increasing purchasing power, the market is primed for a potential upward move.
Historically, this supply-demand imbalance has led to significant price increases. As market supply tightens and purchasing power increases, we may be on the verge of a price rally.
“Investors should be on the lookout for a possible breakout in the coming weeks.”
*This is not investment advice.
