Substantial Bitcoin withdrawals valued at hundreds of millions of USD from major exchanges have caught the attention of the crypto community. Concerns arise that if Bitcoin fails to surpass the $86,000 mark, the potential for a price correction remains high, particularly as investor confidence wavers.
Recent data from the X account OnchainDataNerd sheds light on significant withdrawals made by prominent Bitcoin whales from leading exchanges. Notably, Galaxy Digital withdrew 554 BTC ($76.74 million) from OKX and Binance, while Abraxas Capital pulled out 1,854 BTC ($157.26 million) from Binance and Kraken. Two other big players, identified as addresses 1MNqX and 1BERu, made withdrawals of 545.5 BTC ($45.5 million) and 535.2 BTC ($45.44 million) from Coinbase, respectively, totaling over $280 million in Bitcoin withdrawals in a single day.
Such massive withdrawals, exemplified by Galaxy Digital and Abraxas Capital, often indicate a move of BTC into cold storage, a positive signal interpreted as a bullish stance anticipating a rise in future prices and alleviating selling pressure.
On another front, there has been a surge in new Bitcoin investors entering the market, potentially driving short-term price growth. However, long-term holders have refrained from accumulating further, signaling apprehension amid the heightened volatility in the market.
Glassnode's report highlighted a rise in first-time Bitcoin buyers, with the influx boosting short-term price projections. Analyst Ali, in his post on X, utilized the TD Sequential technical indicator to predict Bitcoin's price trajectory, noting a buy signal on the weekly BTC chart.
Bitcoin’s current price above $80,000 signifies growth potential, with expectations for further increases if it consistently closes above $86,000. While recent whale accumulations have been positive, a notable dip in inflows into Bitcoin ETFs indicates diminishing investor confidence, possibly exerting downward pressure on prices without fresh market catalysts.
Moreover, data from Lookonchain points out an unstaking of over $1.26 billion in Bitcoin from Babylon. Should this capital return to exchanges, it could intensify selling pressure, hindering Bitcoin's ability to surpass crucial resistance levels.