Bitcoin surpasses $42,000, traders move $800 million in BTC from exchanges
Bitcoin closed the week at multi-week highs on February 6, enduring a quiet weekend that boosted sentiment.
BTC/USD 4 hour chart | Source: TradingView
Bitcoin will flip $41,000 in support
Data from TradingView shows that BTC showed no regrettable volatility over the weekend and continues to test the $42,000 resistance while holding $40,000 as support.
Initially, the price unexpectedly rallied on Friday, leading people to believe it was a “fakeout,” but as of press time, there hasn’t been any significant retracement.
“I believe this bitcoin push is not over yet,” prominent trader and analyst told TechDev.
The source: TechDev
Meanwhile, other commentators focused on finding factors that could help prices become more sustainable. For example, William Clemente sees $41,000 as a turning point between support and resistance that he can use as a stepping stone to the next $50,000 move.
“The price action is pretty simple, smart for BTC. Put the price in the green cells, want to see a lower bottom to continue. Flipping the $40k-41k zone as support and a possible start to keep an eye on $47k, which is the confluence between the opening year and the real STH price. The last major zone is at $58,000.”
The source: William Clemens
Traders move $800 million in Bitcoins from exchanges
In all, $800 million worth of bitcoin was moved from exchanges amid the leading cryptocurrency’s price surge to over $42,000.
The sharp rise in price is quite unexpected for a market filled with fundamental and on-chain data suggesting that digital gold will continue to fall as the market has failed to recover multiple times.
But while the majority is betting on the end of the bull market and another drop below $30,000, the centralized exchanges are constantly facing the drain of reserves. This shows that traders are not actively selling like most think.
The first signs of optimism for the industry were that the majority of cryptocurrencies on exchanges “walked away” and the stock market plummeted, while Bitcoin and other digital assets traded in the mid-range, established or positive.
Normally, negative cash flow on the exchange is seen as a good sign for the market, as selling pressure is significantly less during times of large outflows than when traders and investors are actively moving their funds to a centralized or decentralized exchange.
The previous 3-month high of 1,217,994 was seen on February 4, 2022
— Glassnode Alerts (@glassnodealerts) February 6, 2022
As BTC flows are currently negative on the exchange, it can be concluded that the majority of the market is not ready to sell their holdings despite Bitcoin’s negative performance over the past few months.
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