Bitcoin price action last week revealed a number of issues ups and downs, from a new all-time high of $73,780 earlier in the week, a 12% drop in the following days and a value below $65,000. Crypto data analysts have noted that large amounts of Bitcoin have been withdrawn from major exchanges during the period of uncertainty, suggesting that major investors are expecting the price to rise further.
According to a social media post by crypto analyst Ali Martinez, the total BTC balance on crypto exchanges has fallen by over 21,400 over the past week, with the emergence of 13 new whales, each holding over 1,000 BTC.
BTC withdrawal from exchanges
Bitcoin crossed $73,700 last week, setting a new all-time high, but has struggled to gain traction above price levels. Interestingly, the new all-time high appears to have triggered a wave of profit-taking among some investors. However, on-chain and exchange data suggests that Bitcoin still feels bullish sentiment among some investors, especially large-scale investors.
Notably, crypto analyst Ali Martinez pointed out in a post on his social media platform that the total BTC balance briefly increased in the first few days of March before going back into free fall on March 5th. Last week alone, 21,401 BTC were withdrawn from crypto exchanges.
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While the #Bitcoin bull market is temporarily paused, it is notable that 21,401 #BTC were removed from crypto exchanges last week and the network welcomed 13 new whales, each holding over 1,000 $BTC. pic.twitter.com/oSXaKBR4Z1
— Ali (@ali_charts) March 16, 2024
Similarly, crypto analytics platform IntoTheBlock noticed this pattern of outflows throughout the week. According to ITB, BTC withdrawals from crypto exchanges reached their peak this year on March 15. Interestingly, $750 million worth of Bitcoin was withdrawn that day, the highest since May 2023.
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Over $750 million in BTC was withdrawn from exchanges yesterday, the highest since May 2023. The majority of these withdrawals came from Bitfinex ($524 million) and Kraken ($130 million) pic.twitter.com/ 8d3eIJROhv
– IntoTheBlock (@intotheblock) March 15, 2024
What does this mean for Bitcoin?
Since the beginning of the year, the Bitcoin ecosystem has seen significant inflows, resulting in a sharp increase in the price of the cryptocurrency. However, this rally has since slowed and triggered a price correction based on market sentiment Achieving the most negative mood since December 2023 towards BTC. Bitcoin is currently trading at $68,201, down 3.44% over the last seven days.
After such a strong price increase, it is normal for momentum to wane as the market consolidates and decides the next move. While momentum has slowed, the overall trend is for Bitcoin remains bullish.
Judging by the huge amounts of Bitcoin that have been withdrawn from exchanges recently, it looks like whales are preparing for another rally. Bitcoin is now showing signs a rally and is up 5% in the last 24 hours.
BTC price crashes as trading week begins | Source: BTCUSD on Tradingview.com
Featured image from Business Today, chart from Tradingview.com
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