Exchange’s Bitcoin Balance Just “Dropped Off a Cliff” as Bullish Undercurrent Grows
Bitcoin is currently growing incredibly strong from a technical and fundamental perspective.
One indicator of the digital asset’s fundamental strength is the massive exchange outflows seen throughout the past several weeks.
The trend has been picking up steam as of late, and just a couple of days ago, the balance of BTC within exchange wallets fell off a cliff, hitting the lowest level seen in ages.
Analysts are noting that this is a highly bullish development, as it suggests that the cryptocurrency is well-positioned to see organic growth as the selling pressure from exchanges starts to evaporate.
From a technical perspective, the cryptocurrency is also showing immense signs of strength. One trader is noting that bears conducted a failed breakdown yesterday. This opens the gates for further near-term upside in the days ahead.
Bitcoin Flashes Signs of Strength as Technical Outlook Grows Bright
Throughout the past several days, Bitcoin has been caught within a consolidation phase in the upper-$11,000 region. This came about following the rejection at $12,000 that the crypto posted on Saturday.
Although bulls have yet to successfully surmount this key resistance level, their ability to hold BTC directly beneath it for an extended period of time is a positive sign.
At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,850. It has been trading around this level for the past day, and each dip has been quickly absorbed by buyers.
While speaking about the fleeting Bitcoin dip seen yesterday, one analyst explained that this “failed breakdown” is a positive sign for the cryptocurrency’s near-term outlook.
He notes that although he would ideally like to long $11,450, the break back above $11,800 suggests it may not decline this low anytime soon.
“BTC – Eyes on the local highs. Failed breakdown yesterday. Bounced directly at a key HTF S&R. Grinding back up since then. Ideally, I would prefer to long $11,450 but I’m not opposed to a long above $11.8k if there’s a strong reaction. I’ll take what I can get,” he explained while pointing to the chart seen below.
Image Courtesy of UB. Chart via TradingView.
BTC’s Fundamental Outlook Grows Brighter by the Day
Bitcoin’s fundamental outlook has been growing brighter alongside its technical outlook.
One metric showing its current fundamental strength is the amount of BTC on exchanges, which has been declining sharply in recent times.
“The amount of Bitcoin held on exchanges just dropped off a cliff. It happened two days ago – whales bought up the selloff. BTC flowing out of exchanges is *bullish*” one analyst noted.
Image Courtesy of Cole Garner. Chart via CryptoQuant.
The confluence of Bitcoin’s technical and fundamental strength is likely to continue lifting it higher in the weeks and months ahead.
Featured image from Unsplash. Charts and pricing data from TradingView.