Bitcoin has once again found its way above $28,000 despite the widespread uncertainty in the crypto market. This recent bullish move follows the news that Binance and its CEO Changpeng Zhao were being sued by the Commodities Futures Trading Commission (CFTC), which triggered large withdrawals from exchanges.
$660 Million In Bitcoin Flow Out Of Centralized Exchanges
In the last week, there has been a significant amount of Bitcoin flowing out of centralized exchanges such as Binance and Coinbase. These outflows coincide with the increased regulatory scrutiny surrounding crypto firms and exchanges as regulators seek to lay down tangible rules for these companies to abide by.
Data from Coinglass shows that in the last seven days, over 23,542 BTC flowed out of exchanges. At current prices, this comes out to approximately $660 million in BTC that have left the balances of centralized exchanges.
A good number of this outflow has taken place in the last couple of days. On Tuesday, Binance alone saw around 4,750 BTC withdrawn in the space of 24 hours as investors moved to self-custody their coins due to fears of a possible collapse.
BTC balances on exchanges decline | Source: Coinglass
The total BTC exchange balance is also on a steady downtrend as it is down 15,049 BTC in the last 30 days and recorded another 5,202 BTC loss in the last day. This brings the total Bitcoin on exchanges to 1,904,189, around 10% of the total circulating supply.
BTC Sets Sights On $29,000
With the amount of BTC leaving exchanges, the digital asset has been able to reclaim its bullish trend once more. In the last day, it crossed $28,000 and is now set to test the $29,000 resistance once more. This rapid growth of Bitcoin suggests that $30,000 is more likely to be reclaimed this time around as the momentum continues to build.
BTC price trading above $28,000 once more | Source: BTCUSD on TradingView.com
Bitcoin’s price is up over 5% already and another 5% move from here would push the asset toward $30,000. If BTC is able to comfortably beat $30,000, it would actually signal that the bull market is back in full swing, and the upward ride begins.
However, there is still significant resistance being mounted at $29,000 since bears are not giving up so easily. After that, $30,000 would be an even harder level to beat given its importance to the bull market. However, BTC’s climb above $28,500 already shows that the bulls currently have the upper hand.
At the time of writing, BTC is changing hands at a price of $28,539. Its trading volume has crossed $20.9 billion, representing a 12% increase in the last day.
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from NewsBTC, chart from TradingView.com