Bitcoin (BTC) outflows from exchanges are on the rise: Are new peaks on the way?

Bitcoin (BTC), which has been on a losing streak in recent days, has given investors hope from mass outflows from stock markets.

Bitcoin (BTC) experienced a 5% drop last week. At the time of writing, the leading cryptocurrency is trading at $95,300 and is below the crucial $100,000 level. With bitcoin fluctuating, the crypto exchange BTC production increased.

Last week, net outflows of Bitcoin from cryptocurrency exchanges exceeded $2.5 billion, according to data from crypto data platform CryptoQuant. Exchange outflow means that crypto assets are withdrawn from exchange wallets. When an asset’s exchange rate rises, it indicates that investors are choosing to keep their assets in private wallets, avoiding trading or selling. This development is generally seen as a bullish signal.

Factors Supporting Bitcoin’s Rise

BitcoinA positive funding rate raises the prospect of a short-term boom. Currently, the funding rate in the futures markets is at 0.0081. When an asset’s funding rate is positive, it means long positions are paying off short positions. The data discussed shows that the market is generally in an upward trend and prices are expected to rise.

Due to the overall decline in the market, Bitcoin price fell below the Ichimoku Cloud’s Leading Span A level. This level is in the $100,000 band as resistance. Ichimoku Cloud tracks the momentum of an asset’s market trends and identifies potential support/resistance levels.

When the price is trading below the Leading Span A level of the Ichimoku Cloud, it indicates that selling pressure is strong and buyers are finding it difficult to push the price higher. This scenario may signal downside potential unless the price breaks above the cloud.

If the price of Bitcoin breaks this resistance, it can take its price to ATH ($108,388). In a scenario where this resistance is not broken, the price can be expected to decline to $95,690.