Bitcoin, the leading cryptocurrency, fell below $54,000 last week due to selling pressure from the German government, Mt.Gox and whales. BTC, which recovered to over $58,000 over the weekend, fell back to $54,000 in the morning.
While BTC has recovered in the last hours and rose above $ 58,000, it is at $ 57,860 at the time of writing.
While Bitcoin exhibited sudden dump-pump movements, a bullish comment came from the CryptoQuant analyst.
While there were large amounts of sales in Bitcoin, the analyst said that there were also purchases. Accordingly, the analyst stated that the largest Bitcoin withdrawal of 2024 took place and announced that 46,000 BTC was withdrawn from the exchanges on July 5.
Referring to the fact that the increase in Bitcoin outflows is often interpreted by investors as a bullish signal, the CryptoQuant analyst said that large investors, like whales, move their Bitcoins to their wallets, which is a potential indicator of bullish expectations and holding in the long term rather than selling.
Finally, the analyst stated that, according to historical data, these outflows could be a bottom or a reversal signal.
“This chart shows Bitcoin exchange net flow on spot exchanges with a significant emphasis on the outflow of over 46,000 BTC on July 5.
This increase in outflows, clearly marked on the chart, indicates that Bitcoin has moved significantly from exchanges, which can often be interpreted by investors as a bullish signal.
Potential Reversal Zone: Large pullbacks may indicate that investors are expecting a price increase and are choosing to hold their assets rather than sell them.
Historically, significant breakouts can signal a bottom or reversal zone as investors may be in a long-term holding position anticipating a price recovery or uptrend.”
*This is not investment advice.