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Although Bitcoin the price is facing challenges emerging significantly from its $60,000 support level, recent on-chain data revealed a interesting mood swings among Bitcoin lovers. Despite the ongoing price correction, it seems that long-term owners remain undeterred. In fact, about 15,917 BTC, with an estimated value of $987 million, was withdrawn from various cryptocurrency exchanges last week.
Bitcoin Is Leaving Crypto Exchanges In Droves
According to a a previous NewsBTC reportBitcoin’s recent dip to $60,000 can be largely attributed to the actions of short-term holders. On-chain data revealed that this particular group of traders decided to exit their positions after Bitcoin’s performance failed to meet expectations in early October, further intensifying selling pressure. However, long-term owners have taken full advantage of this additional selling pressure. Rather than following the short-term market, many long-term investors seized the opportunity to add more Bitcoin to their portfolios.
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As the data would have it, long-term holders appear to have applied the selling pressure, many of them taking the opportunity to add to their holdings. According to on-chain data highlighted by crypto analyst Ali Martinez, Bitcoin reserves in the cryptocurrency exchange have been gradually decreasing since October 3. On that day, the total balance of Bitcoin in the exchange stood at 2.5825 million BTC. What is noteworthy is that this figure was the result of several consecutive days of BTC entering the market, starting on September 28 and continuing until October 3. During this period, the price of Bitcoin dropped from $66,230 to $60,047, marking a decline which is about 9.3%. as many traders sell through exchanges.
However, in an interesting reaction, long-term holders have seen this entry of BTC into the exchange as an opportunity to acquire more tokens. As a result, there has been a consistent decrease in the total balance of Bitcoin in the exchange since October 3. The numbers show that 15,917 BTC were withdrawn from the exchange between October 3 and the time of writing, bringing the total amount of Bitcoin exchange reserve to about 2.5667 million BTC. .
What Does This Mean for Bitcoin?
The outflow of BTC from the exchange is generally seen as positive for the price of the cryptocurrency going forward, as it reduces the amount of BTC available for sale. During this breakout period, Bitcoin retested the $64,000 price level on October 7. However, it has pulled back and is approaching the $60,000 price low again.
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As of the time of writing, Bitcoin is trading at $60,912, marking a decrease of 2.1% in the last 24 hours. This dip shows the importance of long-term owners and bullish investors continue to accumulate BTC from trading. The onus is now on long-term owners to continue to accumulate Bitcoin from trading to to help prevent further price declines.
The featured image was created with Dall.E, a chart from Tradingview.com
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