Bitcoin (CRYPTO: BTC) the world's top cryptocurrency is showing signs of stopping its fall as on-chain analytics show some bullish sentiment once again.
What Happened: On-chain data show that 121,000 Bitcoin — worth nearly $2.4 billion as of press time — left cryptocurrency exchanges on Tuesday. This is the biggest outflow registered since June 17, when market participants withdrew nearly 68,000 BTC amid falling Bitcoin prices.
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An increase in Bitcoin exchange outflow is generally seen as a major bullish sign since users who withdraw their cryptocurrencies usually do so only if they do not expect to sell them in the immediate future. When coins are seen flowing back into crypto exchanges en masse it usually means that a sell-off may be soon coming, or is already happening.
Bitcoin's 68,000 BTC outflows on June 17 happened when the coin bottomed out at the $18,000 level — providing an example of how exceptionally high outflows often signal local bottoms. That instance was followed by Bitcoin rallying toward the $24,500 mark in the next few weeks.
BTC Price Action: As of Tuesday afternoon, Bitcoin was down 1.17% at $19.306.38.
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