[2021-05-27] Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is O

[Woodie]

Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is Over

With blockchain data showing bearish market sentiment is weakening, oversold bitcoin may succeed in establishing a foothold above $40,000. The cryptocurrency crossed above the psychological hurdle soon before press time, having put in lows near $37,000 during the Asian hours.

The seven-day average of net bitcoin inflows to exchanges turned negative for the first time since April 22, data provided by Glassnode show.

That means coins are leaving exchanges after a gap of four weeks, a sign of investors are starting to take direct custody of their holdings, possibly anticipating a price increase.

The fewer coins available for sale on exchanges, the better the chance of the market going up.

Investors typically transfer coins to exchanges when they want to sell their holdings, so consistent net inflows represent a bearish mood, with outflows signaling bullish sentiment.

Read more  https://www.coindesk.com/bitcoin-market-outflow-sentiment

[bbc.reporter]

However, this outflow news including the hype of Ray Dalio and Carl Icahn has not pumped the price. I am afraid that this might be the early signs that we are beginning to enter the bear market.

Also, those holders in Glassnode’s analysis are longterm holders. They are not buying because they expect a pump. They will hold through the bear market.