Mysterious vanishing of a prominent figure from
The price of Bitcoin reached its highest point of $52,858 on February 15, resulting in a monthly gain of 24.3%. However, an interesting trend in Bitcoin exchange flows suggests that even more significant price movements may be on the horizon.
Over the past four days, Bitcoin has reached a new peak for the year 2024, starting from February 12. This surge in price has prompted investors to transfer $1.6 billion worth of Bitcoin into long-term storage.
The increased buying pressure from investors who are investing in newly launched spot ETFs has contributed to Bitcoin’s market capitalization increasing by over $200 billion in the first half of February.
Despite these impressive numbers, it is important to look beyond the headlines and consider the on-chain data trends. CryptoQuant’s exchange reserves metric tracks the number of BTC coins currently held on crypto exchanges and trading platforms in real-time.
The chart shows that on January 25, Bitcoin exchange reserves were at 2.1 million BTC. However, as of February 15, this number has decreased by 31,255 BTC to just over 2 million BTC. With the current price of Bitcoin at $52,000, this means that $1.6 billion worth of BTC has been removed from exchanges as investors opt for long-term storage.
A significant decline in exchange reserves indicates that there is less BTC available for trading on exchanges. While this may be temporary, it often has a positive impact on short-term price movements for several reasons.
Firstly, it suggests that most investors are focused on future gains rather than short-term selling opportunities at peak prices. Additionally, the scarcity created by the reduced market supply leads to a faster price increase with each new wave of demand. With Bitcoin ETF sponsors buying up Bitcoin, this bullish catalyst is likely to drive the price towards the $60,000 milestone in the coming days.
In summary, the decrease in exchange reserves by $1.6 billion has created a scarcity in the market, positioning Bitcoin for further price increases towards $60,000. However, in the short term, there is a major obstacle for bullish traders at the $55,500 level.
IntoTheBlock’s in/out of the money data groups BTC holders based on their historical buy-in prices. It reveals that 462,640 addresses acquired 228,000 BTC at a minimum price of $55,595. These holders may sell their Bitcoin for profit as it approaches their break-even price, potentially creating a roadblock for the bulls.
Nevertheless, if the bulls can overcome this resistance and break above $55,500, there is a strong possibility of a retest of $60,000.
On the downside, if Bitcoin’s price falls below $45,000, it could invalidate the bullish prediction. However, the 898,470 addresses that acquired 509,330 BTC at an average price of $46,400 could act as a support buy-wall, potentially triggering a rebound in a bearish scenario.
