Since the historic crash on March 12, bitcoin (BTC) has been trading sideways over the past couple of days. Data from CryptoQuant showed that BTC whales moved their coins from wallets to major exchanges a few days prior to this crash which could have translated into the big dump.
The good news is that the situation is completely opposite right now. Since March 18, outflows from exchanges have been increasing daily, according to data provided by Glassnode. This suggests that BTC holders have been accumulating and this could be a precursor of the next major rally.
BTC Exchange Balances Hit 8-Month Low; Bull Run Incoming?
Bitcoin is trading at $6,708.88 at the time of publication. The flagship cryptocurrency has been consolidating within the upper $6k zone over the past few days since majestically rebounding from $3K lows. BTC, however, recently faced a swift rejection at $6,900. But, this is not all bearish.
Blockchain analytics firm Glassnode pointed out that there has been a massive withdrawal of coins from exchanges of late. These exchanges are now posting the lowest BTC balances in at least eight months.
This shows that bitcoin holders who have been accumulating in recent weeks are now moving their coins from exchanges to their personal wallets in readiness for the next bull run.
Liquidity Is Slowly Entering The BTC Market
Another widely-followed analyst going by the online alias XC (@runtheirstops) recently observed that BTC’s liquidity has been rising slowly but steadily. It plummeted during the “Black Thursday” market-wide sell-off but has since resumed an uptrend.
Moreover, analyst Crypto Rand has reminded his followers that the BTC halving is roughly 50 days away. While encouraging bitcoin investors to prepare for the huge profits they will rake in in the long-run, he supported his bullishness with the popular stock-to-flow model created by quant analyst PlanB. Worth mentioning that PlanB’s model projects BTC price at $100,000 after the halving.
The massive exchange outflows coupled with the rising liquidity in the bitcoin market and upcoming halving could be a boon for the BTC price in the coming days.