Bitcoin Price Renews Bid For $50,000 After Nearly $5 Billion Exchange Outflows

By John Isige
Published August 20, 2021 Updated August 20, 2021
Best Buy In

DeFi Platform

Exchanges

Wallet

Trading Techniques

Bitcoin Price Renews Bid For $50,000 After Nearly $5 Billion Exchange Outflows

By John Isige
Published August 20, 2021 Updated August 20, 2021
  • Bitcoin price regains ground above $47,000 after testing $44,000 crucial support mid-week.
  • Roughly 111,000 BTC withdrawn from known exchange wallets, creating a perfect environment for Bitcoin to swing higher.

Bitcoin has scared investors this week as it descended to $44,000. Earlier, the flagship cryptocurrency bounced off support at $45,000 and closed the gap to $48,000. However, bulls ran out of steam, challenging the run-up to $50,000. A correction from this failed attempted gradually slid to $44,000 by Thursday.

Bitcoin Price Uptrend Back On Course

BTC is trading slightly above $47,000 at the time of writing. Buyers are keen on securing higher support as their focus shifts to $50,000. The 200-day Simple Moving Average (SMA) is in line to offer the much-needed support.

On the upside, Bitcoin must crack the barrier at $48,000 to clear the path toward $50,000. More buy orders are expected as investors acclimate to BTC trading above $50,000. Realize that the Relative Strength Index (RSI) currently eyes the overbought area following a canceled move to the midline. As the RSI closes the gap to 70, the bullish grip on the price will intensify.

It is essential to realize that a sell signal from the Moving Average Convergence Divergence (MACD) could be nullified soon as the 12-day EMA returns above the 26-day EMA. Perhaps trading above $48,000 will cement the bulls’ influence in the market, setting the pace for further northbound price action.

BTC/USD Daily Chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Meanwhile, the bullish outlook comes after Bitcoin exchange outflows soared massively. In just 30 days, crypto holders have drawn 111,000 BTC from exchange wallets. Drawing from exchanges suggests that investors have a long-term plan to hold. Will Clemente term it as “one of the sharpest drops of exchange inventories in Bitcoin’s history.”

Glassnode, a renowned on-chain analytics platform, recently confirmed the massive outflows running through August.

“Bitcoin exchange flows have returned to a dominance of outflows through August as investors withdraw $BTC.

The market has transitioned through a number of phases of exchange flow dominance over the last year, with outflow dominance last seen in late 2020.”

Bitcoin Intraday Levels

Spot rate: $47,100

Trend: Bullish

Volatility: Growing

Resistance: $48,000

Support: The 200 SMA and $44,000

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
John Isige
1164 Articles
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Loading Next Story