Bitcoin (BTC) has struggled to maintain stability as August begins, with the asset enduring its largest single-day price drop in over a month on Friday.
The recent volatility, especially over the past month, is largely attributed to concerns about a potential sell-off by Mt. Gox creditors, ongoing BTC sales by the German government, and escalating global geopolitical uncertainties, particularly surrounding the upcoming U.S. presidential elections.
Nevertheless, despite these headwinds, Bitcoin’s largest holders have been highly active. According to data from the crypto analytics platform Glassnode, these whales withdrew a record-breaking 84,000 BTC (worth about $5.2 billion) from exchanges last month. Notably, this marked the highest volume of Bitcoin withdrawals from exchanges in nine years and the quickest pace since 2015.
Historically, such significant withdrawals have coincided with Bitcoin’s price nearing its lows, around $200, fueling speculation that this trend might suggest a bullish outlook for the cryptocurrency.
Crypto analytics platform Santiment also observed this trend underscoring the substantial accumulation among Bitcoin holders between 1,000 and 10,000 BTC. Conversely, they noted that smaller holders with 100 to 1,000 BTC appear to be distributing their assets.
“We’ve recently seen an increase in Bitcoin outflows from exchanges, even as Bitcoin has been in a fluctuation phase since February. This surge in outflows could signal a positive shift, with potential price increases and a breakout from the current fluctuation zone,” the firm wrote.
That said, a technical analysis of Bitcoin’s price chart shows the price within a potential “bullish flag” pattern, which could signal a major price breakout. According to analyst ‘Crypto Bullet,’ a successful breakout could push Bitcoin towards targets of $105,000.
However, there is also a risk of a short-term decline to around $54,500, which could serve as a lower support level before a potential bullish surge. If the price breaks out on the downside, Bitcoin could drop to approximately $50,000, where a multi-year support area is located.
On the other hand, analyst Rekt Capital remains optimistic about Bitcoin’s trajectory based on historical price surges following previous Bitcoin halvings. On Saturday, the pundit noted that Bitcoin has returned to the range low zone warning, and we might see some additional downside in the near future. However, with around 110 days passed since the last Halving, he emphasized that Bitcoin is approaching its typical bullish breakout window, which generally falls between 150 and 160 days after the Halving.
Bitcoin traded at $54,986 at press time, reflecting a 4.90% drop over the past 24 hours.
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