The largest cryptocurrency entered a full bull run after Donald Trump won the US presidential election a month ago, but its most recent price movements have been quite disappointing compared to numerous altcoins.
However, the amount of BTC being withdrawn from exchanges continues to rise, and another direction-related metric suggests that the asset’s price still has plenty of room to grow.
Almost 20,000 BTC withdrawn from Coinbase
The amount of a certain asset found on trading platforms is a good clue about its short-term price movements. The greater the supply on the stock markets, the greater the probability of a correction due to significant immediate selling pressure, and vice versa.
The outlook for Bitcoin has been quite positive in this regard over the past few months, as investors periodically withdraw their funds from exchanges and store them in cold storage. From a short-term perspective, the situation is equally promising, as CryptoQuant details.
The analytics company outlined two significant withdrawals from Coinbase in a 24-hour period alone, with nearly 20,000 BTC withdrawn from the largest US exchange. The approximate value amounts to $1.87 billion.
Two important departures that exceed 8,000 #BTC Every Coinbase in the last 24 hours
“19,487 $BTC were removed, with an average cost of $96,043. The total value of these two transactions amounts to approximately $1.87 billion.” – By @burak_kesmeci
Link pic.twitter.com/ADf1qWvkV2
– CryptoQuant.com (@cryptoquant_com) December 3, 2024
Average profitability cooling
The massive BTC rally that took the asset from under $70,000 to just under $100,000 in the span of a few weeks put all investors in the money. Many decided to take some profits after this spectacular run, which resulted in a correction for the asset. Although it has recovered from last week’s drop below $91,000, bitcoin is still unable to challenge $100,000.
However, Santiment provided another optimistic view that signals a shift for profit-makers. The average return on BTC wallets that have been active over the last month has dropped to a “more reasonable” 4.2%. When this metric exceeds 5%, the underlying asset typically pulls back, while a lower percentage “is typically a strong indicator that a rebound is coming.”
Recall that BTC fell several thousand dollars yesterday towards $93,000, but managed to recover most of the losses and is now close to $97,000.
The average return of Bitcoin wallets that have been active in the last 30 days now sits at a much more reasonable +4.2%.
+5% or more on this metric is usually a strong indicator that a correction is coming.
-5% or less on this metric is usually a strong indicator that… pic.twitter.com/EgGHK1kTxK– Sentiment (@santimentfeed) December 3, 2024
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