Cryptocurrency traders are transferring their Bitcoin out of the exchange.
The number of Bitcoin (BTC) transferred out of cryptocurrency exchanges in the past few months has increased, and crypto analytics data provider Glassnode reports today.
According to data shared by Glassnode, at least 96,200 BTC have flowed out of cryptocurrency exchanges in the past months.
Notably, the last time this large amount of BTC was transferred out of exchanges was in March 2020, when the cryptocurrency market was hit with a liquidity crisis.
“Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions throughout history, with most being after the March 2020 liquidity crisis,” Glassnode reports.
Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions through history, with most being after the March 2020 liquidity crisis.
— glassnode (@glassnode) April 4, 2022
Factors Contributing to Massive BTC Exchange Outflow
Although it is not clear what could have led to the large exodus of BTC from crypto exchanges to private wallets, it is obvious that several crypto traders only flocked to exchanges to buy Bitcoin for long-term holding.
Recall that whale traders took advantage of Bitcoin’s price dip recorded on several occasions, including the declaration of a full-scale invasion of Ukraine by Russian president Vladimir Putin in February.
At the time, the price of Bitcoin dipped to $32,000, prompting Bitcoin whales to swing into widespread accumulation.
In another development, the Luna Foundation Guard (LFG), a nonprofit organization that oversees the Terra blockchain, embarked on a Bitcoin purchase spree, which will act as a reserve for the UST stablecoin.
So far, the company has acquired over 30,700 BTC, with the vast majority purchased from cryptocurrency exchanges and sent to private wallets.
Bitcoin Key Support And Resistance Levels
Meanwhile, on-chain data of activities on cryptocurrency exchanges show that Bitcoin is facing a stiff supply barrier between $46,250 and $47,600.
This is an important resistance level to cross for the world’s largest cryptocurrency because more than 2.36 million addresses bought a combined 1.48 million Bitcoin.
Aside from resistance to Bitcoin, significant support for BTC is $41,500. As Per Intoblock data, BTC price at $41,500 is the level where 1.16 million addresses hold 850,000 Bitcoin.