Bitcoin has once again found its way above $28,000 despite widespread uncertainty in the crypto market. This latest bullish move follows news that Binance and its CEO Changpeng Zhao have been sued by the Commodities Futures Trading Commission (CFTC), prompting large withdrawals from exchanges.
$660 million in Bitcoin flows out of centralized exchanges
A significant amount of Bitcoin has flowed out of centralized exchanges like Binance and Coinbase over the last week. These outflows coincide with increased regulatory scrutiny of crypto companies and exchanges as regulators seek to set specific rules these companies must adhere to.
Data from Coinglass shows that over the past seven days, over 23,542 BTC has flowed out of exchanges. At current prices, this equates to about $660 million in BTC that has left centralized exchanges’ balances.
A large number of these outflows have taken place over the past few days. On Tuesday, around 4,750 BTC were withdrawn from Binance alone in 24 hours as investors held their coins themselves amid fears of a possible collapse.
BTC balances on exchanges drop | Source: coin jar
The total BTC exchange balance is also in a steady downtrend as it has dropped by 15,049 BTC in the last 30 days and lost another 5,202 BTC in the last day. This brings the total number of bitcoins on exchanges to 1,904,189, around 10% of the total circulating supply.
BTC aims for $29,000
With the amount of BTC exiting exchanges, the digital asset has regained its uptrend. It surpassed $28,000 on the last day and will now retest the $29,000 resistance. This rapid growth of Bitcoin suggests that $30,000 is more likely to be reclaimed this time around as momentum continues to build.
BTC price trades back above $28,000 | Source: BTCUSD on TradingView.com
Bitcoin’s price is already up over 5% and another 5% move from here would propel the asset towards $30,000. Indeed, if BTC is able to comfortably hit $30,000, it would signal that the bull market is back in full swing, and the ascent begins.
However, there is still significant resistance at $29,000 as the bears are not giving up easily. After that, $30,000 would be an even harder level to hit given its importance to the bull market. However, BTC’s surge above $28,500 is already showing that the bulls have the upper hand at the moment.
At the time of writing, BTC is changing hands at a price of $28,539. Its trading volume has surpassed $20.9 billion, up 12% over the last day.
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