Bitcoin is on the verge of hitting a six-digit valuation, and the rally could gain more momentum from substantial exchange withdrawals.
As per a tweet by a respected analyst, approximately 65,000 BTC, equivalent to $6.37 billion, have been withdrawn from reserve exchanges.
Traditionally, such significant outflows indicate that holders are moving their assets to cold wallets, which suggests a decrease in selling pressure.
A tightening supply on exchanges often precedes bullish price movements, as limited availability boosts upward price trends.
For example, in past Bitcoin cycles, significant exchange withdrawals have preceded major price surges.
The ongoing consistent outflows imply a growing investor confidence in the long-term price trajectory, especially with Bitcoin hitting an all-time high of $99,000.
Increasing Bitcoin Hodlers and Surge in Social Mentions
Based on CryptoCrypto’s analysis of Santiment’s data, the number of Bitcoin holders has surged in the past 24 hours.
This surge coincides with a rise in mentions of a $100,000 Bitcoin on various platforms like X, Reddit, and Telegram. Social media discussions around Bitcoin’s six-digit price mark have hit historically high levels.
Interestingly, the fear of missing out has intensified, with some traders anticipating a swift climb beyond $100,000.
Conversely, mentions of lower price ranges, such as $60,000-$79,000, indicate lingering concerns about potential short-term corrections.
What Lies on the Horizon for Bitcoin?
Traditionally, Bitcoin’s price tends to trend upwards following periods of increased withdrawals and declining exchange reserves. The next significant milestone to watch out for is the psychological barrier of $100,000.
If this bullish momentum persists, it could strongly propel Bitcoin to new record highs.
However, while the fear of missing out is propelling price action, concerns about corrections could lead to profit-taking during this crucial phase.