thecryptobasic.com
Cryptocurrency traders are transferring their Bitcoin out of the exchange.
The number of Bitcoin ($BTC) transferred out of cryptocurrency exchanges in the past few months has increased, and crypto analytics data provider Glassnode reports today.
According to data shared by Glassnode, at least 96,200 $BTC have flowed out of cryptocurrency exchanges in the past months.
Notably, the last time this large amount of $BTC was transferred out of exchanges was in March 2020, when the cryptocurrency market was hit with a liquidity crisis.
“Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions throughout history, with most being after the March 2020 liquidity crisis,” Glassnode reports.
#Bitcoin exchange outflow volume recently hit a rate of 96.2k $BTC per month.
Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions through history, with most being after the March 2020 liquidity crisis.
Live Chart: https://t.co/k9wM940HCQ pic.twitter.com/836zjf39Nh
— glassnode (@glassnode) April 4, 2022
Factors Contributing to Massive $BTC Exchange Outflow
Although it is not clear what could have led to the large exodus of $BTC from crypto exchanges to private wallets, it is obvious that several crypto traders only flocked to exchanges to buy Bitcoin for long-term holding.
Recall that whale traders took advantage of Bitcoin’s price dip recorded on several occasions, including the declaration of a full-scale invasion of Ukraine by Russian president Vladimir Putin in February.
At the time, the price of Bitcoin dipped to $32,000, prompting Bitcoin whales to swing into widespread accumulation.
In another development, the Luna Foundation Guard (LFG), a nonprofit organization that oversees the Terra blockchain, embarked on a Bitcoin purchase spree, which will act as a reserve for the UST stablecoin.
So far, the company has acquired over 30,700 $BTC, with the vast majority purchased from cryptocurrency exchanges and sent to private wallets.
Bitcoin Key Support And Resistance Levels
Meanwhile, on-chain data of activities on cryptocurrency exchanges show that Bitcoin is facing a stiff supply barrier between $46,250 and $47,600.
This is an important resistance level to cross for the world’s largest cryptocurrency because more than 2.36 million addresses bought a combined 1.48 million Bitcoin.
Aside from resistance to Bitcoin, significant support for $BTC is $41,500. As Per Intoblock data, $BTC price at $41,500 is the level where 1.16 million addresses hold 850,000 Bitcoin.
