Bitcoin continues to remain safe. It is still above the levels of immediate support and getting close to the important local liquidation line around $66,000. Even though most people in the crypto world think prices will go up, new information and events give people even more reason to be optimistic.
An expert on X says that Bitcoin owners are taking their coins out of exchanges in a noticeable way. A significant quantity of Bitcoin worth $3.8 billion was taken off of platforms on July 5, when the price of Bitcoin dropped and got close to $50,000.
After this exit, the price of Bitcoin quickly rose again, going from $53,500 to $65,000 earlier this week. New information from July 16 shows that an extra $3.4 billion worth of Bitcoin was taken out.
Bitcoin Recovery Signs Emerging
It’s not clear yet what will happen immediately to prices, but based on past trends, these withdrawals could cause prices to rise, similar to how they did during earlier recoveries.
Analysts usually see these kinds of exchange withdrawals as a sign that prices will go up. When people move their assets to non-custodial wallets, it means they want to keep control and are less likely to sell. Because there is less BTC on exchanges, bulls usually gain because it makes the cryptocurrency more valuable.
The Realized Profit and Loss Ratio has also recently dropped to its lowest level in several months. Based on profit and loss, this metric, which measures how the market feels, says that investors who planned to get out at the highs have already done so.
Traders might have to wait for this number to go up, possibly to levels above $72,000 and $74,000, before they see more people selling their profits.
Prices for Bitcoin have also gone back to their average cost base for short-term holders (STHs) as they rise above $62,000. People who bought Bitcoin in the last 155 days are now making funds, and they might wait to sell until they make even more money.
Analysts at CryptoQuant say that prices have gone up by more than 30% when they go above the usual cost basis in the past.
