Bitcoin Reclaims $28,000 As BTC Balances On Exchanges Fall
Bitcoin has once again found its way above $28,000 despite widespread uncertainty in the cryptocurrency market. This recent bullish move follows news that Binance and its CEO Changpeng Zhao were being sued by the Commodities Futures Trading Commission (CFTC), which triggered major withdrawals from exchanges.
$660 million in Bitcoin flow from centralized exchanges
In the last week, there has been a significant amount of Bitcoin leaving centralized exchanges such as Binance and Coinbase. These departures coincide with increased regulatory scrutiny surrounding cryptocurrency companies and exchanges, as regulators look to establish tangible rules for these companies to comply with.
Data from Coinglass shows that over the past seven days, over 23,542 BTC have left exchanges. At current prices, that comes to approximately $660 million worth of BTC that left the balances of centralized exchanges.
A good part of this exit occurred in the last few days. On Tuesday, Binance alone saw around 4,750 BTC withdrawn in the space of 24 hours, as investors switched to self-custodying their coins due to fears of a potential meltdown.
BTC balances on exchanges decline | Source: Coinglass
The total balance of the BTC exchange is also on a constant downward trend, as it dropped 15,049 BTC in the last 30 days and recorded another loss of 5,202 BTC in the last day. This brings the total Bitcoin on exchanges to 1,904,189, about 10% of the total supply in circulation.
BTC is eyeing $29,000
With the amount of BTC flowing out of exchanges, the digital asset was able to regain its uptrend once again. On the last day, it broke above $28,000 and is now expected to test the $29,000 resistance once more. Such rapid Bitcoin growth suggests that $30,000 is more likely to be recovered this time around as momentum continues to build.
BTC price trading above $28,000 once more | Source: BTCUSD on TradingView.com
Bitcoin price is already up more than 5% and another 5% move from here would push the asset towards $30,000. If BTC is able to comfortably hit $30,000, it would signal that the bull market is back in full swing, and the upward tour begins.
However, there is still significant resistance mounting at $29,000 as the bears do not give up so easily. After that, $30,000 would be an even harder level to top given its importance to the bull market. However, BTC’s rise above $28,500 already shows that the bulls have the upper hand.
At the time of this writing, BTC is changing hands at a price of $28,539. Its trading volume exceeded $20.9 billion, representing a 12% increase over the last day.