Bitcoin remains steady, hovering above the immediate support level and just inches from reclaiming that all-important liquidation line in local currency at $66,000. The broader crypto-community expects that buyers will step up and drive prices higher. However, recent developments have bolstered this expectation.
BTC Worth Billions in BTC Removed from Exchanges
Exchange data shared According to an analyst at X, BTC users are increasingly withdrawing their coins from exchanges.
When prices plummeted on July 5 and the most valuable coin in the world was pushed close to $50,000, an astounding $3.8 billion BTC were removed from exchanges.
As soon as this occurred, the prices quickly rose, from the lows of $53,500 and $65,000 that were recorded this week. Although prices are moving above $62,500, BTC continues to be withdrawn in greater numbers. BTC users drained another $3.4billion on July 16th.
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There is still no It is not clear how to do this. If past performances are any guide, prices may rise like after the fall to $53,500.
Analysts interpret the exchange in a variety of ways outflows Positive for price. When coin owners move their assets into non-custodial Wallets, they are trying to regain control over the coins. They may be reluctant to sell.
The decision to not sell their crypto on demand helps maintain prices, since the holders won’t do so if it was in their best interest. By increasing scarcity, the bulls benefit from fewer BTC available on exchanges.
Bitcoin Set to Rise Above $72,000
Another analyst points out that this metric, the Realized Loss Ratio (RPLR), has become more popular. fallen It is now at its lowest level in several months. It is used as a gauge of market sentiment. Profit and loss are the main factors that influence it at any time.
The decrease in price indicates that those investors who sought to take profits at the peak have done so. Trading must now wait until these metrics rise to higher levels, perhaps multi-month highs.
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Bitcoins are also available. reclaimed its average cost basis of short-term holders (STHs) as prices recover above $62,000. The money is now with those who have bought in the last 155 trading days. The majority of them are probably holding, and expect to see more gains during the upcoming sessions.
CryptoQuant analyst say that in the past whenever the average cost base is exceeded, prices have risen by more than 30%.
Chart from TradingView, Featured image by DALLE
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Source: www.newsbtc.com