While the cryptocurrency sector is still waiting for a massive change to shake it up, analysts are looking in all possible directions while trying to anticipate the next move of the flagship digital asset – Bitcoin (BTC).
One indicator in particular that could potentially signal what the future holds for Bitcoin is the amount of this token on crypto exchanges (or lack thereof), as well as the volume in which it moves toward and away from these platforms.
As it happens, exchanges recently witnessed a drain of 40,572 BTC in a single day, which is the largest daily amount of Bitcoin to leave trading platforms in the last four months, according to the data presented by market intelligence company Santiment on October 19.
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Considering the price of Bitcoin at press time, this means that $778.46 million worth of BTC left the exchanges on October 18, in what is the largest outflow since June 18.
Lower chance of a sell-off?
As the platform added, “the supply of coins on exchanges is down to 8.48%” – lowest since November 2018 – pointing out that a decreasing supply of a token on exchanges indicates a lower risk of a future sell-off.
This development could allow investors to breathe a sigh of relief, considering that some technical analysis (TA) indicators haven’t looked good for Bitcoin lately, resembling its bearish price movements during previous market crashes.
It would also confirm the forecasts of those analysts who remained bullish on the maiden cryptocurrency, expecting it to still make a significant push to the upside and “soon surprise everyone.”
Bitcoin price analysis
Meanwhile, Bitcoin is trading at $19,187, demonstrating an increase of 0.28% over the past 24 hours, as well as of 4.06% compared to seven days before, according to CoinMarketCap data retrieved by Finbold on October 20.
As things stand, the market capitalization of still the largest digital asset by this indicator is currently $367.61 billion, beating mainstream players like JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC), and Walmart (NYSE: WMT).
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
