Despite its recent underwhelming performance compared to various altcoins, Bitcoin's potential remains promising. Increasing withdrawals from exchanges, coupled with key address-related metrics, suggest ample room for Bitcoin's price growth. 20,000 BTC withdrawn from Coinbase exchange may point to a massive rally.
Short-term price fluctuations can be gauged by the supply of an asset on trading platforms. Higher supply often indicates potential corrections due to increased sell pressure.
Over recent months, the Bitcoin scenario has been favorable, with investors relocating their assets from exchanges to cold storage. According to analytics firm CryptoQuant, this trend continues positively. Notably, Coinbase recently witnessed two major withdrawals totaling nearly 20,000 BTC within just 24 hours. These withdrawals, valued at approximately $1.87 billion, reflect a strategic move by investors.
Bitcoin's recent bullish run saw its price surge from under $70,000 to nearly $100,000. This rapid ascent encouraged many investors to take profits, resulting in a temporary price dip. Although Bitcoin has rebounded from its recent low below $91,000, it still struggles to breach the $100,000 mark. Yet, insights from Santiment indicate a positive outlook for those holding profits.
The average monthly returns of active BTC wallets have softened to a more sustainable 4.2%. Such moderation is often a precursor to market recovery, suggesting a bounce could be imminent. As Bitcoin hovers near $97,000, this trend provides renewed optimism for a potential rally ahead.