The amount of Bitcoin flowing out of cryptocurrency exchanges picked up momentum on Oct. 18, hinting at weakening sell-pressure, which could help BTC price avoid a deeper correction below $18,000.
Bitcoin forming a “bear market floor”
Over 37,800 BTC left crypto exchanges on Oct. 18, according to data tracked by CryptoQuant. This marks the biggest Bitcoin daily outflow since June 17, wh traders withdrew nearly 68,000 BTC from exchanges.
Moreover, over 121,000 BTC, or nearly $2.4 billion at current prices, has left exchanges in the past 30 days.
A spike in Bitcoin outflows from exchanges is typically seen as a bullish signal because traders remove the coins that they wish to hold from platforms. Conversely, a jump in Bitcoin inflows into exchanges is typically considered bearish given that the supply is immediately available for selling increases.
For instance, Bitcoin bottomed out locally at around $18,000 when its outflows from exchanges reached nearly 68,000 BTC on June 17. The cryptocurrency’s price rallied toward $24,500 in the following weeks.
This time, the massive uptick in Bitcoin outflows from exchanges surfaces as the BTC price downtrend pauses inside the $18,000–$20,000 range.
Read more: cointelegraph.com