Bitcoin leaves exchanges in droves as daily new addresses increase

Bitcoin (BTC) investors are pulling their assets out of crypto exchanges at an increasing rate. An analysis by on-chain intelligence platform CryptoQuant revealed that over the past few days, exchanges have witnessed a growing outflow of BTC, even though the major digital currency has been in a fluctuating area since February.

As exchanges continue to exit, new BTC addresses increase daily.

CryptoQuant analysts say that the increase in bitcoin outflows may be a positive sign for the possibility of an increase in the price of BTC and the exit of the asset from the fluctuation area in the future.

Investors withdraw BTC from exchanges

The increase in BTC withdrawals from exchanges could be related to investors’ preparations for the second stage of the bull cycle, which is expected to start towards the end of the year. It also suggests a period of accumulation for BTC investors as they position themselves to participate in bitcoin gains in the coming weeks.

The 35% increase in new daily addresses is proof that BTC investors could be piling up. Market intelligence platform IntoTheBlock revealed that bitcoin fell to multi-year lows in new daily addresses in early June; however, the trend has recently reversed.

While withdrawals of BTC from exchanges and the rise of new addresses are positive factors, some on-chain indicators suggest that a BTC price correction is imminent. One of these is the Coinbase Premium Index (CPI), which is below its 14-day simple moving average (SMA14).

Bitcoin sellers have the upper hand

A separate analysis by CryptoQuant explained that the CPI is currently at -0.008 and the SMA14 at 0.020, indicating that sellers have a stronger hand in the US crypto market. BTC selling pressure often intensifies when the CPI falls below its SMA14, according to 2024 chain data, and this usually leads to price corrections.

“Especially after the approval of Spot ETFs in the US, CPI data has become a much more effective leading indicator for price tracking. I find that using CPI data in conjunction with the SMA14 it is more successful at monitoring short-term trends,” said CryptoQuant analyst Burak Kesmeci.

At the time of writing, BTC had fallen significantly from the $70,000 region, which it touched earlier this week, and was changing hands at $65,900.

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