Bitcoin Soars as $1 Billion Exits Exchanges in Record Outflow

• BTC supply in centralized cryptocurrency exchanges drops to a record low. 
• After losing momentum, Bitcoin is struggling to stay above the $40,000 price mark. 

According to a recent report, on-chain activities recorded on the Bitcoin network have increased significantly over the past few years. Notably, more than 28,000 BTC worth an estimated $1.19 billion has exited certain exchanges.

According to data from blockchain analytics firm Gassnode, the funds were moved out of centralized exchanges and have been the largest single-day outflow in BTC recorded since the 14th of December 2022.

Additionally, Bitcoin balances in wallets on centralized exchanges have also declined to 2,327,025 BTC, which was the lowest level recorded since April 2018. This massive reduction typically highlights a massive reduction in supply. In the long term, Bitcoin’s price could benefit from it.

At report time, BTC is trading for $41,947. The asset has sustained mild volatility over the last hour but is still managing to stay above the $40,000 price mark. Before this, Bitcoin did hit a daily high of $43,134.

This year, many key players agree that Bitcoin has outperformed their expectations and is primed for a more promising run in the coming year. Notably, the year-to-date increase has gone up by more than 153%.

Analysts Lay Down Long-term Price Predictions

Talking to X, a well-known cryptocurrency analyst CryptoCon, revealed that the greed surrounding Bitcoin ETFs is at the highest level and that data has overheated. While a handful of analysts are looking forward to Bitcoin at $50,000 in the long term, he insists that Bitcoin has found a local high at $45,000. The analyst asserted;

The SMI has completely peaked, the first time this happens in every cycle has marked the cycle mid-top.
Analysts abroad are looking for the common .618 cycle retrace at 48k, meanwhile, when measuring from the April 2021 technical top, we’re already there! The major importance of this? Better buying prices for those that need them. I believe around the 30k region.

Greed surrounding #Bitcoin ETFs couldn’t be higher, and data couldn’t look more overheated.

This is why I have remained a step ahead, and have been saying that Bitcoin has found its local high at 45k.

The SMI has completely peaked, the first time this happens in every cycle has… pic.twitter.com/xFH018fhKp

— CryptoCon (@CryptoCon_) December 28, 2023

He added that he has been bullish on Bitcoin since the asset hit $25,000. At this time, market players were only expecting Bitcoin to at least tap the $21,000 and $23,000 price levels, but the big bull outperformed. He maintains that the technical data calls for a pause.

On the other hand, Ali Charts, another prominent market analyst has made a long-term prediction for Bitcoin. In a recent tweet, he explained that Bitcoin was designed around a four-year cycle, which is driven by its halving events, which often mirrors its price action. He wrote;

Historically, this translates to 3 years of bullish trends followed by 1 year of bearish correction. As per this cycle, BTC is in an upward phase, potentially extending until December 2025!

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