Bitcoin remains stable, hovering above a key support level, and attempting to reclaim the $65,000 mark.
Against this backdrop, there has been a significant increase in token withdrawals from exchanges, indicating potential bullish moves.
Recent data shows a rise in tokens being withdrawn from exchanges. On May 5th, when the price of Bitcoin fell close to $50,000, approximately $380 million was withdrawn.
On May 8th, a total of $1 billion worth of BTC was withdrawn from exchanges, while the price of BTC rose from $560,000 to $650,000.
Then, on June 4th, an additional $1 billion was withdrawn as the price reached around $65,000.
Following this, the price quickly rebounded to around $65,000. The additional $1 billion withdrawn on June 4th reflects the ongoing trend of decreasing supply in the market.
Historically, such large-scale withdrawals are seen as bullish as they indicate holders are less willing to sell. This increasing scarcity often supports higher prices.
Furthermore, the recent decline in the realized profit and loss ratio, a measure of market sentiment, suggests that investors wanting to exit at higher prices have already done so. This decline in the ratio could be a precursor to further price increases.
The realized profit and loss ratio has dropped to extremely low levels after reaching profit at the $72,000 level.
Everyone who wanted to sell at $72,000 has done so, therefore, for the market to achieve the next profit, it needs to reach new levels above the all-time high (ATH).
Bitcoin has also surpassed the average buying price of recent buyers, indicating further potential for price increases. If the past trend continues, the price of Bitcoin could see a significant rise and potentially break through $72,000 soon.