As one-day outflows from major exchanges exceed 30,000 BTC, Bitcoin (BTC) investors are voting with their wallets.
According to data from on-chain analytics firm CryptoQuant, 29,371 BTC exited exchange order books on Jan. 11, the biggest since Sep. 10.
Short-term optimism returned on Tuesday as BTC/USD recovered and sustained levels above $42,000. It matches the four-month peak in inflows.
After that, the pair went on to record local highs of $43,150 before consolidating. This shows a different outcome than the generally expected drop to $30,000.
While such a result is still debatable, buyers appear to be comfortable joining the market above $40,000.
For context, even the bounce that sparked the run to all-time highs at the end of September failed to produce as much buyer uptake as Tuesday.
Even the bounce that began the rally to all-time highs at the end of September failed to generate the same level of buyer interest as Tuesday.
“Volumes are dwindling. That means the market can easily have large moves up or down,” said Samson Mow, CEO of Blockstream, in response to the current situation.
“I’d assume the next move is up, given that we’ve already had a major move down and everyone is buying like there’s no tomorrow.”
For its order book data, CryptoQuant monitors a total of 21 exchanges. Separate data last week focused on a “crazy” disparity between bids and offers. This indicates that bears were finally tiring of selling, according to one expert.
BTC Buyers Get Bolder
Spot purchasers were historically the largest group of those that were uninterested in BTC at current prices.
Miners are continuing to add to their reserves at an increasing rate this year. This is according to Cointelegraph, with long-term holders adamant in their refusal to sell.
A similar situation is happening on derivatives markets, according to CryptoQuant contributor IT Tech. The one pointed out a bullish trend in the BTC taker buy/sell ratio.
The ratio of purchase and sell volumes from derivatives platforms’ takers is the statistic. A few less than one indicates bearish mood, which is now the case, however, the trend is upward.
“If we pass 1, we should have Bullish mood again, and there’s a probability of a price trend reversal,” IT Tech explained in one of CryptoQuant’s “Quicktake” posts on Wednesday.
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