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The bull-case for Bitcoin continues growing stronger by the day. The benchmark cryptocurrency has been able to move above the $9,000 resistance level that was previously hampering its price action.
It now appears to be poised to push higher as its technical outlook grows increasingly positive.
The crypto’s strength may be further enhanced by an interesting trend seen amongst BTC investors, as they appear to be moving their holdings away from exchanges at a rapid rate.
This trend is emblematic of investors adopting a long-term investment strategy, as the movement of Bitcoin into cold storage indicates that these investors are planning on holding their cryptocurrency over a longer-time frame.
Bitcoin Sees Strong Price Action as Bull-Case Grows Strong
Bitcoin’s price action has been rather positive in recent times, as the benchmark cryptocurrency has posted a sharp rebound from its recent visit to lows of $8,100 that came about as a result of its rejection at $10,000.
It has erased the majority of these losses throughout the past several days, and it appears to be growing technically stronger as it attempts to gain a foothold above the $9,000 threshold.
BTC does face some heavy resistance within the lower-$9,000 region, however, as sellers are likely going to defend $9,200 and $9,500.
These are the two levels that the cryptocurrency struggled to break above prior to its rally past $10,000 a couple of weeks ago.
This Investor Trend is Extremely Bullish for BTC
This positive price action may be driven by a trend of investors increasingly moving their funds away from exchanges and towards cold storage.
Data from analytics platform Glassnode shows that this trend – which has been occurring throughout the past several months – was perpetuated by the halving.
“In the hours before and after Bitcoin’s halving, exchange net flow decreased significantly. So far, the event has had no impact on 2020’s trend of investors withdrawing BTC from exchanges.”
One popular pseudonymous cryptocurrency analyst on Twitter spoke about this in a recent tweet, explaining that the results of this multi-month trend – which are likely to be bullish – shouldn’t come as a shock to investors.
“Fiat keeps flooding in to exchanges. Bitcoins keep flooding out of exchanges. There has been no big change in this behaviour for 2 months now. The result can not come as a shock, nor is rocket science. You see, these blockchains are quite transparent,” he explained in reference to the aforementioned data.
The exodus of Bitcoin away from exchanges could also provide the cryptocurrency with some immense stability as investors begin treating BTC as a store of value rather than as a speculative instrument.
Featured image from Unplash.
