Bitcoin (BTC) Exchange Net Outflows Spike as Bullish Investor Sentiments Dominate the Scene

Market participants are increasingly pulling their Bitcoin (BTC) tokens out of exchanges as bullish sentiments dominate the scene. This turn of events comes on the back of

Bitcoin (BTC) price continues to experience a strong rebound, and as a result, a large number of BTC tokens are being pulled out of exchanges.

This occurrence is being driven by the recent price recovery, where BTC recovered to the price of $96,000.

To provide some context, Bitcoin faced a massive pullback after hitting an all-time peak of $99,800 on Nov. 22.

As a result, the primo crypto asset retested the $90,000 support four days later. Notably, The Crypto Basic confirmed that this retracement was due to profit-taking trades from long-term holders.

However, Bitcoin seems to be mounting a campaign for recovery, which coincides with a large spike in exchange outflows.

Data from IntoTheBlock shows that Bitcoin’s aggregated exchange net outflows hit a high of 1,270 BTC yesterday.

Interestingly, this figure marks a massive 270% increase from the net outflows of 342.33 BTC recorded the previous day.

The latest trend of net outflows follows a period of net inflows from Nov. 24 to 26, during which 3,147 more BTC tokens flowed into exchanges as prices dropped.

For those who are new to the crypto space, the recent shift to negative flows suggests that investor sentiment in Bitcoin is now improving, as more market participants take out their tokens from exchanges to possibly HODL them.

This trend often reduces selling pressure, contributing positively to price action.

A Massive Slump in BTC Exchange Inflows

Meanwhile, further data from IntoTheBlock indicates that the spike in net outflows was primarily due to a drop in inflows rather than an increase in outflows.

While outflow volume slumped to 18,580 BTC yesterday, inflow volume fell to 17,300 BTC.

This confirms that more BTC left exchanges, leading to an increase in net outflows.

The latest net outflow figure of 1,270 BTC is the largest net outflow recorded since Nov. 23, when 13,980 more BTC moved out of exchanges.

CryptoQuant data further reveals that Bitcoin’s Exchange Reserve has continued to drop, falling to a low of 2.47 million BTC yesterday.

Interestingly, a report from João Wedson, a verified CryptoQuant author, showed that investors are moving less Bitcoin from other exchanges to Binance.

He noted that this was a bullish sign, as Binance is often the destination for large-scale dumps, and a drop in transfers to Binance confirms that investors are not looking to sell.

Meanwhile, Bitcoin currently trades for $96,351 at press time, up 0.72% this morning.

Market analyst Jason Pizzino suggested today that Bitcoin has slipped into a phase he calls the “Grand Final.” Citing historical data, he says this region could lead to new ATHs for BTC.

The Bitcoin 4-Year Cycle has officially entered the Right Side of the cycle, which means this is a strong market.

Three out of the current four cycles (3 out of 4) have fooled the majority of people into thinking the cycle would end early, aka a left-translated cycle like in… pic.twitter.com/FYKDpAq0Pl

— Jason Pizzino 🌞 (@jasonpizzino) November 29, 2024

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.