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Bitcoin Withdrawal Wave Points To Another Major Leg Up In The Bull Cycle, Analyst Says
Bitcoin has been declining since its August 14th all-time high, currently trading above $110,000. Despite some analysts believing the bull run might be over, on-chain data suggests further upward movement. Significant withdrawals from Kraken, totaling up to 50,000 BTC, are interpreted as a sign that a market peak has not yet been reached. This is because market tops usually see an influx of coins into exchanges for distribution. While retail demand is currently weak, large wallets are still accumulating Bitcoin, indicating potential for another strong surge. However, some analysts present a contrasting view, noting that major Bitcoin holders are reducing their exposure. Whale reserves have dropped by 100,000 coins in the last 30 days, suggesting risk aversion. This selling pressure has contributed to Bitcoin's recent price drop below $108,000. Technical analysis, however, suggests potential for renewed strength, with Bitcoin nearing the invalidation of a bearish pattern. A convincing push above the neckline of this pattern could provide bullish momentum. Despite this, a failure to defend the $107,000-$108,000 support level could lead to a significant drop.
