Bitcoin investors are making moves by withdrawing their assets from cryptocurrency exchanges at a higher rate. Recent data from CryptoQuant, an on-chain intelligence platform, shows that there has been an increase in BTC outflows from exchanges despite the digital currency’s price fluctuations since February.
As the outflows from exchanges continue to rise, the number of new BTC addresses is also growing daily. Analysts at CryptoQuant believe that this increase in bitcoin outflows could potentially signal a positive trend for a future price surge and the asset’s exit from its current fluctuation period.
The surge in BTC withdrawals from exchanges could be attributed to investors gearing up for the second phase of the bull cycle, which is anticipated to begin towards the end of the year. It also indicates a period of accumulation for BTC investors as they position themselves to capitalize on potential gains in the near future.
The recent 35% increase in daily new addresses further supports the notion of BTC accumulation among investors. Market intelligence platform IntoTheBlock noted that bitcoin experienced a significant drop in daily new addresses at the start of June, but this trend has since reversed.
Despite the positive signs of increasing outflows and new addresses, some on-chain indicators suggest that a BTC price correction may be on the horizon. The Coinbase Premium Index (CPI), currently below its Simple Moving Average over 14 days (SMA14), indicates that sellers have the upper hand in the US crypto market. Historically, when the CPI falls below its SMA14, selling pressure on BTC tends to intensify, leading to price corrections.
According to a separate analysis by CryptoQuant, the current CPI stands at -0.008 while the SMA14 is at 0.020, underscoring the dominance of sellers in the market. The approval of Spot ETFs in the US has further emphasized the significance of CPI data as a leading indicator for tracking prices. Analyst Burak Kesmeci recommends using the CPI data in conjunction with the SMA14 for effective short-term trend monitoring.
As of the latest update, BTC has seen a significant drop from its recent peak of $70,000 and is now trading at $65,900. The cryptocurrency market continues to be volatile, with investors closely watching for any signs of a potential price correction or further price movements.
In other news, cryptocurrency exchange Binance is offering a special promotion for new users, providing a $600 exclusive welcome bonus. Additionally, BYDFi Exchange is running a limited-time offer of up to $2,888 in welcome rewards for users who register and open a 100 USDT-M position for free. These promotions highlight the growing competition and incentives within the cryptocurrency exchange ecosystem.