Bitcoin has enjoyed some uptrend over the past day as the crypto once again visits the $44k price level. On-chain data suggests that an uptick in exchange outflows may be behind the move.
Bitcoin Exchange Outflows Observe A Spike In The Past Couple Of Days
As pointed out by an analyst in a CryptoQuant post, the BTC exchange outflows have showed raised values recently.
The “all exchanges outflow” is an indicator that measures the total amount of Bitcoin exiting wallets of all exchanges.
When the value of the metric goes up, it means more BTC is currently exiting exchanges. Such a trend has usually been bullish as holders usually withdraw their coins to personal wallets for hodling purposes. Prolonged large outflows can be a sign of whale accumulation.
On the other hand, when the indicator’s value stays low, it implies not many investors are moving their Bitcoin off exchanges at the moment.
This trend can be bearish if the opposite metric, the inflow, spikes up. This is because holders usually deposit to exchanges for withdrawing to fiat or for purchasing altcoins.
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Now, here is a chart that shows the trend in the Bitcoin all exchanges outflow indicator over the past year:
The indicator's value seems to have spiked up | Source: CryptoQuant
As you can see in the above graph, the value of the Bitcoin outflow has shown an uptick recently. This means that a large amount of withdrawals has taken place over the past couple of days.
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