Nearly 30,000 BTC are leaving major exchanges in a single day as buyers copy miners, pulling BTC supply off the market.

Bitcoin (BTC) investors are voting with their wallets for a one-day outflow from major exchanges of around 30,000 BTC.

Data from analytics firm CryptoQuant shows that as of January 11, 29,371 BTC have left exchange order books, the most since September 10.

The four-month high outflow is in line with short-term optimism that returned on Tuesday as BTC/USD held above $42,000.

The pair then hit local highs of $43,150 before consolidating, which however is a different turn of events than the widely predicted cascade to $30,000.

While such an outcome remains a matter of debate, buyers appear ready to enter the market above $40,000.

For context, even the rebound that started moving to all-time highs in late September did not bring as much acceptance from buyers as it did on Tuesday.

Bitcoin exchange diagram. Source: CryptoQuant
“Toms are thin. This means the market can easily make big moves up or down,” Blockstream CEO Samson Moe commented on the status quo:

“Given that we already had a big move down and everyone is buying like there is no tomorrow, I would say the next move is up.”
CryptoQuant tracks a total of 21 exchanges for its order book data. Last week, separate data focused on what one analyst called a “crazy” supply/demand imbalance, indicating that the bears are finally tired of selling.

Buyers are getting smarter
Spot buyers have previously been the main group showing no interest in BTC at current price levels.

Related: Bitcoin bounces back to $42,000 as rates start to favor ‘short squeeze’ higher for BTC

As Cointelegraph reported, miners are building up reserves at an accelerated pace this year, and long-term holders are adamant not to sell.

IT Tech, a member of CryptoQuant, highlighted the bullish buying/selling ratio of bitcoin takers, revealing a similar pattern unfolding in the derivatives markets.

The metric refers to the ratio of buying and selling volumes by buyers on derivatives platforms. A reading below 1 indicates bearish sentiment, and while this is currently the case, the direction is up.

“If 1 crosses, we should be back bullish and have a chance to appreciate a trend reversal,” IT Tech summed up in one of CryptoQuant’s “Quicktake” posts on Wednesday.

“Personally, I am preparing for the last bull run that will happen sooner or later.”

Buy/Sell ratio of Bitcoin takers compared to an annotated BTC/USD chart (screenshot). Source: CryptoQuant

Source: CoinTelegraph

LEAVE A REPLY