Thousands of Bitcoin flow out of Coinbase as whales enter buying spree for this good reason
- Bitcoin price climbs above $40,000 in a bullish trend reversal as demand from institutional investors climbs.
- $2.57 billion worth of Bitcoin has been pulled out of exchanges since March 28, fueling a bullish narrative among investors.
- Analysts set a target of $55,000 for Bitcoin price in the ongoing rally, as the market structure remains bullish.
Bitcoin price has recovered from the drop below $40,000, spurred by demand from institutional investors. Ki Young Ju of CryptoQuant believes institutional buying is key in the Bitcoin price rally.
Bitcoin price rally could be fueled by institutional buying
Bitcoin price started a rally crossing the $40,000 level earlier today. Proponents have identified three critical reasons for the comeback in BTC price. Rising institutional demand, a spike in the number of whales on the Bitcoin network and massive BTC outflow across exchanges like Coinbase Pro are the three key reasons fueling the current bull run.
Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, believes institutional buying could emerge as a key narrative in the crypto market once again.
There is a spike in Bitcoin outflow: 64,233 BTC have been pulled out of crypto exchanges since March 28. $2.57 billion worth of Bitcoin has been scooped up by investors and pulled out of the circulating supply.
Bitcoin balance on exchanges
Coinbase Pro, one of the largest crypto exchanges, has shifted a large volume of Bitcoin, a total of 30,000 in a single day this week. A spike in BTC buying among whales and large wallet investors is considered a bullish sign for the asset’s price.
Bitcoin exchange reserve on Coinbase Pro
A leading crypto analyst, Ali Martinez noted that 16 new whales joined the Bitcoin network over the past week, buying a minimum of $39 million in BTC. The rise in whales on the network increases the buying pressure on the asset and is fueling the Bitcoin price rally.
Addresses with a balance greater than 1,000 $BTC have surged since Apr 8. Roughly 16 new #BTC whales have joined the network.
— Ali Martinez (@ali_charts) April 18, 2022
The increasing buying pressure might seem insignificant, but each of these new addresses acquired a minimum of $39,000,000 worth of #Bitcoin. pic.twitter.com/l3CoHyQj3A
@AltcoinSherpa, a pseudonymous crypto analyst and trader, believes the current bullish market structure in Bitcoin implies no significant change in long-term price targets. While altcoins may have another leg up, Bitcoin price will hit the $55,000 target.
$BTC: Absolutely nothing has changed for me, glad that I have been traveling during this crab action. I'm still bullish, still a technically bullish market structure. I think alts are going to have 1 more leg up; move up to 55k and then we'll see after. #Bitcoin pic.twitter.com/eQx1C9mUvr
— Altcoin Sherpa (@AltcoinSherpa) April 19, 2022
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
