Will Bitcoin Skyrocket to New ATH as This Crucial Metric Falls to 8-Year Low?

The number of Bitcoin addresses depositing into exchanges has dropped to 132,100.

According to insights published on CryptoQuant by analyst CryptoOnchain, this is a figure last seen in 2016.

Decreased Selling Pressure

This metric, which tracks the number of addresses sending inflow transactions to exchanges, suggests a decrease in selling pressure as fewer investors are moving their BTC to trading venues for liquidation. This reduced sell-off activity follows bitcoin’s recent surge above the $60,000 mark, which triggered outflows from centralized exchanges (CEXs).

According to IntoTheBlock data, the cryptocurrency saw over $1.3 billion in net outflows from these platforms over the past week. Most of these, around 12,420 BTC, occurred on September 10 when its price struggled to hold above the $57,000 level.

These movements signal increased accumulation, with many investors holding onto their assets in anticipation of a bullish market. Some crypto analysts also have a bullish outlook for bitcoin.

In a recent X post, the anonymous analyst Titan suggested that the largest crypto could break out to $92,000. He believes this is likely because the asset historically sees at least a 40% movement whenever it surpasses the 50-day simple moving average. He also predicted a 71% increase in the coming months.

In another post, analyst Michael van de Poppe mentioned that it might stay in a consolidation phase for now, with a potential bullish breakout occurring by the end of the month or early October. However, macroeconomic factors could still influence the market despite the current sentiment among investors.

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Liquidations and Market Decline

The cryptocurrency market, however, witnessed a downturn earlier today, ahead of a crucial Federal Open Market Committee (FOMC) meeting set for later this week. The U.S. Federal Reserve is expected to discuss potential interest rate cuts, which could impact global financial markets, including cryptocurrencies.

According to CoinGlass data, over $178 million in positions were liquidated in the past 24 hours, marking a 292% increase on a daily basis. Bullish traders holding long positions experienced the most losses, with $153 million being wiped out.

Ethereum and Bitcoin led in the liquidations, with the former experiencing $55 million and the latter following with $35 million. The largest single one, worth $2 million, occurred on the OKX exchange.

CoinGecko data shows that the global crypto market capitalization has also fallen by 3.7% over the last 24 hours, standing at $2.13 trillion. Bitcoin’s price has also dropped by 3% in the last 24 hours, trading below $58,000. However, the asset’s daily trading volume has registered an uptick of 106.28%, and is standing at $27.36 billion.