Bitcoin
is
steady
when
writing,
floating
above
immediate
support
levels
and
inches
away
from
reclaiming
the
all-important
local
liquidation
line
at
around
$66,000.
Even
as
the
broader
crypto
community
expects
buyers
to
step
in
and
push
prices
higher,
there
are
exciting
developments
that
buttress
this
outlook.

Billions
Worth
Of
BTC
Pulled
From
Exchanges

According
to
exchange
data

shared

by
one
analyst
on
X,
BTC
holders
increasingly
pull
their
coins
from
exchanges.

On
July
5,
when
prices
tanked,
pushing
the
world’s
most
valuable
coin
close
to
$50,000,
a
staggering
$3.8
billion
BTC
was
moved
from
exchanges.

 

Once
this
happened,
prices
rapidly
bounced
back,
rising
from
as
low
as
$53,500
to
$65,000
recorded
earlier
this
week.

Though
prices
have
been
moving
horizontally
above
$62,500
recently,
more
BTC
is
being
withdrawn.
On
July
16,
BTC
owners
pulled
another
$3.4
billion
of
the
coin.

Related
Reading

Even
though
there
is
no

clear

impact
on
prices,
if
past
performance
guides,
it
is
likely
that
prices
will
edge
higher
like
they
did
after
the
collapse
to
$53,500.

Usually,
analysts
interpret
exchange

outflows
as
positive
for
price.
Whenever
coin
holders
move
assets
to
non-custodial
wallets,
they
want
to
take
control
of
their
coins.
As
such,
they
might
be
unwilling
to
sell.

Their
decision
helps
support
prices
since
they
won’t
sell
on
demand
if
they
wish
to,
like
if
they
held
them
on
crypto
platforms
like
Binance
or
Coinbase.
Moreover,
with
fewer
BTC
readily
available
on
exchanges,
bulls
tend
to
benefit
due
to
increased
scarcity.

 

Is
Bitcoin
Preparing
For
Another
Leg
Up
Above
$72,000?

Beyond
this
development,
another
analyst
notes
that
the
Realized
Profit
and
Loss
Ratio
metric
has fallen and
stands
at
multi-month
lows.
The
metric
is
used
to
gauge
market
sentiment,
mainly
influenced
by
profit
and
loss
at
any
point
in
time.

This
decrease
suggests
that
investors
who
wanted
to
exit
at
highs
have
already
taken
profit.
For
now,
traders
must
wait
for
these
metrics
to
rise,
perhaps
to
multi-month
highs,
ideally
above
$72,000
and
$74,000,
before
profit-taking
resumes.

Related
Reading

Bitcoin
has
also reclaimed
its
average
cost
basis
of
short-term
holders
(STHs)
as
prices
recover above
$62,000.
Those
who
bought
within
the
last
155
days
are
now
in
the
money.
They
are
likely
holding
and
expecting
more
gains
in
the
coming
sessions
before
realizing
profits.

In
the
past,
whenever
the
average
cost
basis
is
surpassed,
CryptoQuant
analysts
say
prices
tend
to
rise
by
over
30%.

 

Feature
image
from
DALLE,
chart
from
TradingView

Go to Source
Author: Dalmas Ngetich

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