More

    Coinbase Bitcoin Outflows Are The Strongest Bullish Signal “Ever”

    Bitcoin price is trading above $50,000 once again, following a short-lived correction below the key level. Bullish news that Coinbase had filed to go public helped send the price higher this morning, but the real strength in the cryptocurrency comes from outflows leading the exchange.
    Here’s why one top quant analyst says that the 13K BTC outflows are the “strongest bullish signal” they’ve “ever seen.”
    13,000 Bitcoin Leave Coinbase, Bought Below $50,000 Price Level During Dip
    A massive whale recently sold down the current peak of the ongoing Bitcoin rally, but according to Coinbase outflows institutions were ready in wait, buying the dip with whatever capital they could.
    Related Reading | Running Bitcoin: Passing The Torch From Hal Finney To Jack Dorsey
    At the low of the recent correction, some 13,000 BTC left the popular US cryptocurrency platform. The platform is said to be where Tesla and Square acquired their coins, and other major players are doing so as well.

    A total of 13,390 BTC left Coinbase yesterday after being bought at lows | Source: CryptoQuant
    According to CryptoQuant CEO Ki Young Ju, this is the “strongest bullish signal” he’s ever seen. But why exactly are BTC leaving the exchange so bullish for the leading cryptocurrency by market cap?
    Why Continued Outflows Are The Strongest Bullish Signal Ever
    Bitcoin’s value, like any asset, is based on supply and demand. If there is more supply than demand, price decreases. If demand outweighs supply, price appreciates.
    Because the total BTC supply is so scarce, when demand reaches peak levels, price action goes parabolic to compensate for the complete lack of available supply.
    Coinbase outflows of this size and more, have each time preceded a sizable bullish impulse and price increase. Outflows around early February, early January, and around Christmas all met or exceeded the total BTC leaving Coinbase yesterday.

    A total of 13,390 BTC left Coinbase yesterday after being bought at lows | Source: BTCUSD on TradingView.com
    However, the overall reserves of BTC one exchanges still continue to dry up over time. With so little supply to go around, and demand not yet ready to wane, the cryptocurrency could see a dramatic rebound from here.
    Related Reading | Forget 2021, Here’s How High Bitcoin Price Can Go By 2026
    Technicals do hint that price action is overheated, but the most recent correction could be enough of a pullback to allow Bitcoin’s wildly bullish fundamentals take back over and send prices soaring again.
    Speculation on where the “top” of the current bull market uptrend lies ranges from $100,000 per coin to as high as $325,000 per BTC. At the current rate of appreciation, however, the low end of the range could end up selling the cryptocurrency a coin or two short.
    Featured image from Deposit Photos, Charts from TradingView.com

    Related articles

    Comments

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Newsletter

    Subscribe to stay updated.

    bitcoin
    Bitcoin (BTC) $ 64,136.00
    ethereum
    Ethereum (ETH) $ 2,373.66
    binance-coin
    Binance Coin (BNB) $ 565.31
    xrp
    XRP (XRP) $ 1.78
    cardano
    Cardano (ADA) $ 1.44
    tether
    Tether (USDT) $ 0.999832
    polkadot
    Polkadot (DOT) $ 42.14
    uniswap
    Uniswap (UNI) $ 34.85
    litecoin
    Litecoin (LTC) $ 267.25
    dogecoin
    Dogecoin (DOGE) $ 0.135549
    chainlink
    Chainlink (LINK) $ 36.92
    bitcoin-cash
    Bitcoin Cash (BCH) $ 797.73
    stellar
    Stellar (XLM) $ 0.620733
    theta-token
    Theta Network (THETA) $ 12.10
    filecoin
    Filecoin (FIL) $ 172.38
    usd-coin
    USD Coin (USDC) $ 0.997497
    vechain
    VeChain (VET) $ 0.163326
    tron
    TRON (TRX) $ 0.139410
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 63,938.00
    eos
    EOS (EOS) $ 7.56
    klay-token
    Klaytn (KLAY) $ 2.69
    solana
    Solana (SOL) $ 25.97
    crypto-com-chain
    Crypto.com Coin (CRO) $ 0.246833
    terra-luna
    Terra (LUNA) $ 16.06
    compound-ether
    cETH (CETH) $ 47.46
    cosmos
    Cosmos (ATOM) $ 24.24
    monero
    Monero (XMR) $ 323.36
    iota
    IOTA (MIOTA) $ 2.07
    okb
    OKB (OKB) $ 21.12
    bitcoin-sv
    Bitcoin SV (BSV) $ 295.12
    bittorrent-2
    BitTorrent (BTT) $ 0.008083
    binance-usd
    Binance USD (BUSD) $ 0.996718
    aave
    Aave (AAVE) $ 400.05
    tezos
    Tezos (XTZ) $ 6.47
    ftx-token
    FTX Token (FTT) $ 56.42
    neo
    NEO (NEO) $ 66.96
    avalanche-2
    Avalanche (AVAX) $ 34.81
    kusama
    Kusama (KSM) $ 462.29
    compound-usd-coin
    cUSDC (CUSDC) $ 0.021833
    elrond-erd-2
    Elrond (EGLD) $ 231.39
    algorand
    Algorand (ALGO) $ 1.46
    nem
    NEM (XEM) $ 0.416231
    huobi-token
    Huobi Token (HT) $ 20.67
    pancakeswap-token
    PancakeSwap (CAKE) $ 23.75
    thorchain
    THORChain (RUNE) $ 15.07
    cdai
    cDAI (CDAI) $ 0.021299
    holotoken
    Holo (HOT) $ 0.018238
    dai
    Dai (DAI) $ 1.00
    hedera-hashgraph
    Hedera Hashgraph (HBAR) $ 0.380166
    dash
    Dash (DASH) $ 297.94