The price of the crypto market flagship Bitcoin (BTC) broke above the critical $42,000 level on April 21, while gradually climbing above resistance levels after testing support below the $40,000 threshold just a few days ago.
One of the elements that could mean a change in Bitcoin price either way is the amount of money flowing out and towards cryptocurrency exchanges. Bitcoin has recently experienced a significant exit from exchanges.
Notably, on April 14, Bitcoin experienced the biggest stock market breakout in five weeks, with $25,878 or $1.04 billion BTC leaving the cryptocurrency exchanges in just 24 hours. Following this, the reserve of BTC spot exchanges hit a 4-year low, according to Crypto Quant data released on April 21.
According to historical data, large amounts of Bitcoin moving from exchanges may cause prices to rise if the trend is maintained for a few days. On-chain data and social measurement platform Santiment “Historically, large amounts of BTC moving from exchanges can lead to price spikes given a few days for the pattern to continue.” says.
BTC flowing through exchanges is generally seen as a positive development in the crypto space, for two reasons. The model shows that BTC investors are no longer willing to sell their cryptocurrencies for various reasons, opting instead for the 'HODL' option. It also means that there is less BTC available to whales in the cryptocurrency market, and liquidity is reduced due to the limited supply of BTC in general.
The rule of thumb for Bitcoin assets is to store your own keys, and the model may also indicate that users are taking this advice more seriously in the current climate.
According to CoinGecko data; Bitcoin (BTC) is trading at $40.402.35 at the time of writing. Bitcoin (BTC) last 24-hour trading volume is $34.784.053.206. Bitcoin price is down -5.7% in the last 24 hours.