Key Points
- Exchanges have seen an outflow of $677 million worth of BTC due to a massive price drop and liquidations.
- Despite the market uncertainty, 67% of crypto traders’ accounts were in long positions, indicating a bullish outlook.
Massive Outflow of BTC from Exchanges
The overall sentiment in the cryptocurrency market has dramatically shifted in the past 24 hours due to a significant price drop and billions of dollars in liquidations. The price of Bitcoin (BTC) has also experienced a sharp decline, an unusual occurrence in the market.
The potential reason for this market volatility and the massive price drop across cryptocurrencies is the trade war initiated by U.S. President Donald Trump. He announced on February 2nd that he has implemented tariffs on Mexico, Canada, and China, causing the overall market to plummet.
Bullish Sentiment Among Traders and Investors
Despite the market uncertainty, traders and investors seemed bullish on BTC as they continued to accumulate and bet on long positions. Since the beginning of the price drop, exchanges have seen an outflow of a substantial $677 million worth of BTC. This considerable outflow in the struggling market suggests potential accumulation by whales, investors, and long-term holders, which could create buying pressure and drive a further upside rally.
As BTC’s price began trending downward over the past 24 hours, global traders have increased their long exposure. 67% of accounts were taking long positions, indicating a bullish outlook for the king coin. These on-chain metrics suggest that BTC presents an ideal buying opportunity.
Bitcoin Price Action and Key Levels
BTC has respected the crucial support level of $91,500. However, this is the eighth time the asset has tested this level, which appears to be weakening its strength. If the asset fails to hold this level and closes a daily candle below $91,000, there is a strong possibility of a 20% decline, potentially reaching the $74,000 level.
On the positive side, despite heavy price fluctuations, BTC has maintained itself above the 200 Exponential Moving Average (EMA), which suggests it is in an uptrend. The current price action and market sentiment suggest that BTC will remain bullish as long as it trades above the $92,500 level.