57,000 Bitcoin has left exchanges in one day as demand returns and the crypto reaches the upper end of its multi-month trading move.
Bitcoin (BTC) reached a $40,000 resistance flip this Thursday as on-chain data showed large withdrawals from some exchanges.
Data revealed BTC/USD rose to challenge the upper side of its trading range yet again on Thursday.
The couple had seen a fallback after first getting to multi-week highs numbered at $40,600 on Bitstamp previously in the week.
Hitting a bottom of $38,800, Bitcoin then went back to the $40,000 level, with that number still to be flipped to being support at the time of this writing.
As concerns over the energy of this week’s return, data from Thursday nonetheless shows a genuine demand for Bitcoin at great prices.
Shared by CryptoQuant and Bybt, the data seems to show the biggest one-day outflow in one year. A total of 57,000 Bitcoin left exchanges in only one day.
With that, exchange balances went back to levels last witnessed in May, right before a big price correction after BTC started reversing from its all-time record high of $64,500.
Looking for solid support
Despite this demand, market investors stayed convinced about the need for a higher low construction on Bitcoin/USD before any greater levels could go down.
“I believe the market needs to decrease to put in a HL before going up,” popular Twitter trader Pentoshi said.
“To put it easy. I have been bullish from 29.6k but today to me the signals need to go down for higher low.”
Exactly how deep that higher low might be could be anywhere from $36,000 to $32,500, some have predicted.
Order book data from top exchange Binance, meanwhile, has showed a narrowing range for spot price, with sellers and buyers reaching on $40,000 from either side.
This comes at a time when cryptocurrencies are coming under greater attack from regulators in the U.S. for its supposed link to criminals and cybercrime.
Author: Steven Sinclaire