Although the Bitcoin price faces challenges in breaking out significantly from its support level of $60,000, recent on-chain data reveals a fascinating shift in sentiment among Bitcoin enthusiasts. Despite the ongoing price corrections, it appears that long-term holders remain undeterred. In fact, about 15,917 BTC, valued at approximately $987 million, has been withdrawn from various cryptocurrency exchanges over the past week.
Bitcoin Exits Crypto Exchanges In Droves
According to a previous report by NewsBTC, Bitcoin’s recent dip to $60,000 can largely be attributed to the actions of short-term holders. On-chain data reveals that this particular group of traders decided to exit their positions after Bitcoin’s performance failed to meet expectations in early October, further intensifying the selling pressure. However, long-term holders have taken full advantage of this increased selling pressure. Rather than follow the short-term market sentiment, many long-term investors seized the opportunity to add more Bitcoin to their portfolios.
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As data would have it, long-term holders seem to have capitalized on the selling pressure, with many of them taking the opportunity to add to their holdings. According to on-chain data highlighted by crypto analyst Ali Martinez, the Bitcoin reserves on cryptocurrency exchanges have been in a steady decline since October 3. On that day, the total Bitcoin balance across exchanges stood at 2.5825 million BTC. What’s notable is that this figure was a result of several consecutive days of BTC inflows to exchanges, beginning on September 28 and continuing until October 3. During this time, the price of Bitcoin fell from $66,230 to $60,047, marking a decrease of about 9.3% as many traders sold on exchanges.
However, in an interesting turn of events, long-term holders have seen this influx of BTC into exchanges as an opportunity to acquire more tokens. As a result, there has been a consistent decline in the total Bitcoin balance on exchanges since October 3. Numbers show that 15,917 BTC were withdrawn from exchanges between October 3 and the time of writing, bringing the total Bitcoin exchange reserve to about 2.5667 million BTC.
What Does This Mean For Bitcoin?
The outflow of BTC from exchanges is generally seen as positive for the cryptocurrency’s price moving forward, as it reduces the amount of BTC available for sale. During this outflow period, Bitcoin retested the $64,000 price level on October 7. However, it has since reversed and is approaching the $60,000 price floor again.
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As of the time of writing, Bitcoin is trading at $60,912, marking a 2.1% decline over the past 24 hours. This dip shows the importance of long-term holders and bullish investors continuing to accumulate BTC from exchanges. The onus now is on long-term holders to keep accumulating Bitcoin from exchanges in order to help prevent further price declines.
Featured image created with Dall.E, chart from Tradingview.com
