The largest cryptocurrency went on a full bull run after Donald Trump won the US presidential elections a month ago but its most recent price movements have been quite underwhelming compared to numerous altcoins.
However, the amount of BTC getting withdrawn from exchanges continues to increase, and another address-related metric suggest the asset’s price still has a lot of room to grow.
The amount of a certain asset sitting on trading platforms is a proper hint about its short-term price movements. The bigger the supply on exchanges, the bigger the probability for a correction due to the substantial immediate sell pressure, and vice versa.
The landscape around bitcoin has been quite positive in this regard for the past several months as investors are periodically taking their funds off exchanges and to cold storage. From a shorter-term perspective, the situation is equally promising, as detailed by CryptoQuant.
The analytics company outlined two significant withdrawals from Coinbase within a 24-hour period alone, with nearly 20,000 BTC taken out of the largest US exchange. The approximate value stands at $1.87 billion.
Two Significant Outflows Exceeding 8k #BTC Each from Coinbase in the Last 24h
“19,487 $BTC were withdrawn, with an average cost of $96,043. The total value of these two transactions amounts to approximately $1.87 billion.” – By @burak_kesmeci
Link https://t.co/4WkEJ2p3vw pic.twitter.com/ADf1qWvkV2
— CryptoQuant.com (@cryptoquant_com) December 3, 2024
BTC’s massive rally that took the asset from under $70,000 to just shy of $100,000 within the span of a few weeks put every investor in the money. Many decided to realize some profits after this spectacular run, which resulted in a correction for the asset. Although it has recovered from its sub-$91,000 dip from last week, bitcoin is still unable to challenge $100,000.
However, Santiment provided another optimistic viewpoint that signals a change for those sitting in profit. The average returns of BTC wallets that have been active in the past month has declined to a ‘more reasonable’ 4.2%. When this metric exceeds 5%, the underlying asset typically retraces, while a percentage lower than that is “usually a strong indicator that a bounce is near.”
Recall that BTC dropped by several grand yesterday toward $93,000 but has managed to recovered most losses and is close to $97,000 now.
The average returns of Bitcoin wallets that have been active in the past 30 days now sits at a much more reasonable +4.2%.
+5% or more on this metric is usually a strong indicator that a correction is near.
-5% or less on this metric is usually a strong indicator that… pic.twitter.com/EgGHK1kTxK— Santiment (@santimentfeed) December 3, 2024
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