Bitcoin’s Price Pumps As Coinbase Bleeds Out 12,000 BTC

Reynaldo Marquez

1 year ago

2 mins read

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Bitcoin has reclaimed the high area around the $50,000. In the meantime, indicators are turning bullish as the cryptocurrency could be preparing for another leg-up into uncharted territory.

At the time of writing, BTC trades at $57,654 with a 3.1% profit in the daily chart. In the weekly chart, BTC has a 7.5% profit with sideways movement in higher timeframes.

Bitcoin BTC BTCUSD — BTC with small gains in the daily chart. Source: BTCUSD Tradingview

Analyst William Clemente has defended the bullish case for the number one cryptocurrency by market cap. He claims Bitcoin’s base of capital has been increasing with a price action and supply distribution uncommon of local tops. As seen in the chart below, 14.45% of BTC’s supply sits around the $57,000 which acts as important support.

BTC’s supply has become a major factor in its price appreciation. As the chart and Clemente showed, BTC is “consistently moving” into cold storage or addresses with intention of holding it. The trend continues to accelerate with no signs of slowing down.

In addition, BTC’s Realized Cap HODL Waves, which measures the supply’s age distribution or the amount of time a percentage of the supply has been traded, just barely reached its first peak for this bull-run. As Clemente said, there are at least 3 peaks on this metric for every bull-market.

New investors could be behind Bitcoin’s recent sell-off with the Entity-Adjusted ASOL for a 2-week average, a metric used to measure the number of transactions made by unique entities, rises when the price dips. Clemente said:

(Who is selling BTC) The answer is newer, inexperienced market participants. The average age of coins being sold has been steadily trending downward since February.

btc btcusd — Source: Glassnode via William Clemente

Increase In Bitcoin’s Exchange Outflows

Data from CryptoQuant supports the above, with 11,000 BTC being moved out of Coinbase Pro service and 7,200 across all exchanges, according to Glassnode. In less than 24 hours, over 12,000+ BTC seem to have left exchanges into cold storage. As the chart below shows, every time there is a large BTC outflow on this platform, the price goes higher.

Additional data from Santiment, registered an increase in BTC’s whale. Around 86 addresses hold 10,000 BTC with 120,000 BTC accumulated just in April. The firm claims this period saw the “most sustained accumulation since July 2019. Clemente concluded his bullish theory with the following statement:

Coins are moving from weak hands to strong hands. We are in a massive mid-way consolidation of this cycle. Don’t let short-term price action freak you out, this bull run still has a long way to go before becoming overheated. HODL on.

Bitcoin has reclaimed the high area around the $50,000. In the meantime, indicators are turning bullish as the cryptocurrency could be preparing for another leg-up into uncharted territory.

At the time of writing, BTC trades at $57,654 with a 3.1% profit in the daily chart. In the weekly chart, BTC has a 7.5% profit with sideways movement in higher timeframes.

(Who is selling BTC) The answer is newer, inexperienced market participants. The average age of coins being sold has been steadily trending downward since February.

Increase In Bitcoin’s Exchange Outflows

Coins are moving from weak hands to strong hands. We are in a massive mid-way consolidation of this cycle. Don’t let short-term price action freak you out, this bull run still has a long way to go before becoming overheated. HODL on.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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