Bitcoin has enjoyed some upward trend over the past few hours, with the cryptocurrency once again visiting the $ 44.000 price level. On-chain data suggests that an increase in outbound trade flows may be behind the move.
As an analyst pointed out in a CryptoQuant post, BTC trading outflows have been showing high values recently. The outflow of all exchange”Is an indicator that measures the total amount of Bitcoin that comes out of the wallets of all exchanges.
When the value of the metric goes up, it means that more BTCs are coming out of exchanges. One such trend is usually bullish, as holders usually withdraw their coins into personal wallets for hodling purposes. Large prolonged outflows can be a sign of whale buildup. On the other hand, when the value of the indicator remains low, it implies that not many investors are moving their Bitcoins off exchanges. This trend can be bearish if the opposite metric, inflow, increases. This is because holders usually deposit in exchanges to withdraw into fiat or to buy altcoins.
Now, according to the quant, this trend could show that the $ 40.000 price level matters to some investors. Whenever the cryptocurrency approaches a support level, outflow spikes like these usually occur, as holders are eager to buy more when Bitcoin's value falls to such levels.
At the time of writing, Bitcoin's price is floating around $ 43.800, up 2% over the past seven days. Over the past month, the cryptocurrency has lost 12% in value.
After weeks of a downtrend, Bitcoin finally appears to have shown solid upward movement as the cryptocurrency has crossed the $ 44.000 mark several times in the last day.
The move may have been fueled by the recent surge in exchange outflows. It is unclear at the moment whether this is the rally that will help the cryptocurrency break out of the $ 40.000 to $ 45.000 range. However, there is finally some upward momentum for the coin.