Bitcoin hits biggest exchange outflow since Feb 2023, pointing to bullish re-accumulation and growing investor conviction.
Bitcoin’s on-chain dynamics are displaying bullish sentiment yet again. According to CryptoQuant data, the netflow of Bitcoin from centralized exchanges with the 100-day moving average has reached a low for the year, not seen since February 2023.
In the past, such trends of prolonged exchange outflows were followed by dramatic price upswings. As investors pull out substantial amounts of BTC, it typically suggests optimism about the asset’s long-term worth and unwillingness to sell, a definite indication of re-accumulation.
Bitcoin presently trades more than US$93,000, with tight support provided at the US$90,000 mark. While keeping an eye on the US$95,000 resistance level, technical analysts have been tipped that a strong bullish break above that level would create a new leg higher toward the six-figure region.
The 200-day moving average, a key technical support, is now sitting at about US$88,700, is serving as a safety net. Bitcoin’s continued position above this line maintains the bullish setup in place. A break, however, could leave the market open to a correction down to the US$80,000 region.
The technical shift to the bullish in Bitcoin’s structure is concurrent with relaxing macroeconomic tensions. The sudden softening US President Donald Trump on China tariffs and his refusal to oust Federal Reserve Chairman Jerome Powell have assisted in improving market sentiment.
This US Trade policy shift is being viewed as a de-escalation of economic war with China, news that has encouraged investors to view alternative assets such as Bitcoin as a hedge against fiat instability.
As whales are adding to their positions and retail players follow suit, analysts anticipate that Bitcoin may be preparing to break out sustainably. Many experts predict the breakout above US$100,000 if the conditions continue, motivated by decreased supply from exchanges and enhanced investor optimism.
Although some remain guarded, pointing towards the potential to form a cycle top, market structure, and fundamentals are now inclined to be bullish. Low netflow levels reflect pre-rally configurations found in previous bull cycles, signaling further upside ahead.
Bitcoin’s largest exchange outflow since January 2023 has now been confirmed, so signs of pending accumulation are hard to miss. With geopolitical tensions easing and strong technical support, this could potentially mark the onset of an enormous bull wave.
Whether Bitcoin can carry this momentum and smash the US$100,000 barrier boils down to its manner of breaking through the upcoming resistance and global uncertainties.