As Bitcoin’s price action heads towards $60,000, massive withdrawals are occurring from exchanges.
According to data from on-chain analytics platform CryptoQuant, there was a net outflow of 45,000 bitcoin (BTC) from exchanges on August 27.
Bitcoin Exchanges See Surge in Withdrawals
Bitcoin bulls may have temporarily lost steam, but there is already interest in “buying the dip” behind the scenes.
According to CryptoQuant, August 27th is currently expected to be the third largest net exchange outflow of 2024.
The current net outflow total is just under 45,000 BTC, which is down from the daily outflows of around 52,000 BTC and 68,500 BTC on July 5 and July 16, respectively.
In part of a Quicktake blog post on this topic, contributing analyst Amr Taha commented:
“A large negative net flow is generally indicative of bullish sentiment, which generally suggests that investors are likely to move their Bitcoins off exchanges and hold them for the long term, which could reduce selling pressure in the market.”
These withdrawals will be reflected in your overall BTC balance on the major trading platforms tracked by CryptoQuant.
As of August 27, the exchange holds approximately 2,633,391 BTC, which is 12.5% less than the 3,011,975 BTC it held on January 1.
BTC Price “Looks Dark” Amid Increased Selling
As Cointelegraph reported, the short-term trading environment remains frustrating for bulls after multiple failed attempts to break $65,000.
Related: Will the BTC Price Drop End in September? 5 Things to Know About Bitcoin This Week
BTC/USD has gained 40% from its August lows, but there is still not enough buying power to pull back to levels close to all-time highs.
Popular trader Justin Bennett suggested in a post on X that day: “Is $BTC back at $53,000?”
“We had a $63,300 sweep + miss, and we also had a weekly imbalance of $53k that could act as a magnet. $61,700 is the trigger. Let’s take a look.”
Some traders are expecting the BTC price to fall even further below $60,000.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.