Last week’s Bitcoin price movement revealed a range ups and downs, from starting the week at a new all-time high of $73,780 to crashing 12% in the following days to fall below $65,000. Crypto data analysts have seen massive amounts of Bitcoin being withdrawn from major exchanges during the period of uncertainty, indicating that major investors are expecting further price appreciation.
According to a social media post by crypto analyst Ali Martinez, the total BTC balance on crypto exchanges has fallen by over 21,400 in the past week, with the creation of 13 new whales, each holding more than 1,000 BTC.
BTC withdrawal from exchanges
Bitcoin surpassed $73,700 last week to register a new all-time high, but has struggled to gain a foot above the price level. Interestingly, it appears that the new record high has triggered a wave of profit-taking among some investors. However, on-chain and exchange data show that Bitcoin is still experiencing bullish sentiment from some investors, especially large investors.
Crypto analyst Ali Martinez noted this bull accumulation pattern in a post on his social media platform Notably, the total BTC balance saw a brief increase in the first few days of March before falling back into freefall on March 5. In the past week alone, 21,401 BTC were removed from crypto exchanges.
Like the #Bitcoin bull run pauses for a moment, it is notable that 21,401 #BTC have been removed from crypto exchanges over the past week and the network has welcomed 13 new whales, each with more than 1,000 $BTC. pic.twitter.com/oSXaKBR4Z1
— Ali (@ali_charts) March 16, 2024
Similarly, crypto analytics platform IntoTheBlock noticed this outflow pattern throughout the week. According to ITB, BTC withdrawals from crypto exchanges reached their highest point this year on March 15. Interestingly, $750 million worth of Bitcoin was withdrawn on this day, the highest since May 2023.
More than 750 million dollars $BTC was withdrawn from the exchanges yesterday, the highest since May 2023. The majority of these withdrawals come from Bitfinex ($524 million) and Kraken ($130 million) pic.twitter.com/8d3eIJROhv
— IntoTheBlock (@intotheblock) March 15, 2024
What does this mean for Bitcoin?
The Bitcoin ecosystem has witnessed serious money flows since the beginning of the year, leading to a sharp price increase for the cryptocurrency. However, this rally has since weakened and led to a price correction, which has affected market sentiment achieve the most negative sentiment towards BTC since December 2023. Bitcoin is currently trading at $68,201, down 3.44% in the past seven days.
After such a strong price increase, it is normal for momentum to wane as the market consolidates and decides on the next move. Although momentum has slowed, the overall trend is in favor Bitcoin remains bullish.
Judging by the massive amounts of Bitcoin withdrawn from the exchanges recently, it appears the whales are preparing for a continued rally. Bitcoin is now showing signs of a rally, and is now up 5% in the last 24 hours.
BTC price crashes as trading week opens | Source: BTCUSD on Tradingview.com
Featured image from Business Today, chart from Tradingview.com
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