Bitcoin (BTC) has been mostly trading in the red for the past week, struggling to get back above the $47,000 mark. However, some indicators are showing that a price hike may be on the horizon, including the amount of the token leaving crypto exchanges.
Specifically, the flagship digital asset has recently recorded simultaneous outflows in the past weeks across all major exchanges – Coinbase, Binance, Gemini, Kraken, Bittrex, and Bitstamp, according to a Glassnode chart shared by analyst Dennis Porter on April 5.
The chart also demonstrates Binance’s dominance in the volume growth for the period between May and July 2021, which was preceded by the bullish market outflows from Coinbase from the fourth quarter of 2020 until the end of the first quarter of 2021.
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Can we expect a Bitcoin price hike?
Historically, major outflows of cryptocurrencies from exchanges were followed by their price hikes. This is because the supply of such assets available to buy from these exchanges is decreasing, driving their demand, and conversely increasing their price.
If no other significant changes happen (e.g. financial, social, or geopolitical) that could exercise strong downward pressure on the price of Bitcoin in the meantime, then a bullish turn of events for the BTC price might indeed occur.
That said, one of the factors that could indeed pull the price down significantly is the behavior of whales, or users holding at least 1,000 BTC in their crypto wallets.
As Finbold reported on April 4, around 16 Bitcoin whales have abandoned the network or redistributed their BTC supply over the week, leading some analysts to ponder the effect on the price.
Moreover, the self-proclaimed Satoshi Nakamoto and reportedly one of the major Bitcoin whales, has confirmed his plans to dump his supply of 1.1 million BTC worth close to $50 billion at press time.
BTC price analysis
At the time of publication, the flagship digital asset continued its downward pattern, trading at $44,837. This is down by 4.44% for the previous 24 hours and a 5.35% drop across the week.
Currently, the market capitalization of the largest cryptocurrency by this indicator is $851.14 billion, according to the CoinMarketCap data.
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