Santiment, an on-chain analytics company, reports that nearly $1.56 trillion worth of Bitcoin was moved from exchanges over the past week. Bitcoin reached an intraday high of $39,104 on February 1, signaling a shift in the negative mood.
In the last week, 40,785 $BTC were removed from exchanges. This week was the most significant #Bitcoin outflow since September 2. Long-term price movements are historically supported by the trend of coins moving into cold wallets. https://t.co/NsVJGWZkIK pic.twitter.com/Pg37mqfFVr
– Santiment (@santimentfeed). January 31, 2022
CoinMarketCap data shows that BTC gained 4.63% over the past 24 hours while Ethereum gained 8.66%. Bullish traders may find some relief in the fact that Bitcoin historically has produced positive returns in February.
Due to recent upward movements, the lead asset ended January’s negative day in the green. Bitcoin traded at $38,598 as of the writing. This was a recovery from losses in the seven previous days and an increase of 7% over the week.
According to Santiment, Bitcoin had its biggest week of coins leaving exchanges since September 2, with 40,785 BTC moving away from exchanges during the week prior. It noted that the trend of coins moving into cold wallets is a historical sign of long-term price movements.
Whale investors often send their cryptocurrency to exchanges after they have planned to keep it for a while. This is a sign of bullishness from Bitcoin investors. U.Today reported earlier that El Salvadoran President Nayib Bukele predicted that a “gigantic” bitcoin price rise was only a matter time because of its limited supply.
Sentiment in the market improves
The Crypto Fear and Greed Index shows that market sentiment is still in fear as of publication. It has 26 points out 100. This is a slight improvement on yesterday’s “extreme fear”.
Oversold indicators remained strong, and Bitcoin was moving towards the top of a week-long trading range. Bitcoin reached an intraday high of $39,104 at the time of writing. To reverse the downward trend that has been occurring since November, buyers must make significant moves above $40,000-$45,000.
BTC’s January 16.7% drop may be attractive to short-term buyers, if support at $37,000 holds.