A Massive Coinbase outflow recorded means that the bitcoin price is ready to bounce again as the coin is reeling from a strong rejection from above the $60K which sent the number one cryptocurrency by market cap crashing down by more than $10K per coin as we can see more in our latest Coinbase news today.
However, the massive ongoing outflows of BTC are still leaving a popular crypto exchange- Coinbase Pro at an alarming rate. The overall lack of BTC supply which shrinks further every day will be dominated by the demand and will cause the previously trending assets to bounce. This bounce could eventually develop into a resumption of an uptrend which is what the fundamentals are hinting at.
— Joseph Young (@iamjosephyoung) March 26, 2021
The massive Coinbase Outflow could propel the price of Bitcoin higher while the coin is down by more than $10K from its all-time high but it did double twice as much from the previous peak since 2017. The leading cryptocurrency spent more than 100 days above the former high and will not return to levels near or below it. BTC’s price action could not deviate much lower than the current levels thanks to the huge Coinbase Pro outflows. Thousands of BTC leaving the exchange caters to institutional investors which have been called the most bullish signal ever which was thousands of BTC ago.
The technical factors are overheated in the crypto space after a sizeable price increase but the fundamentals are taking over and are leading to a strong bounce. The presence of the institutions and corporations with deep wallets and cash reserves that have buying power left very little room for corrections. The dips are being bought up before the retracements reached past bull markets in total but that doesn’t mean that the momentum cannot turn down for a short while.
Regardless of the technical factors, no BTC left to purchase could cause a dramatic shock that will drive the prices to hundreds of thousands of dollars per coin before the demand starts waning again and the supply returns to exchanges for investors to take profit. The top will be in at that time and the ongoing massive outflows suggested that the top is nowhere near in sight with the bigger players buying more. The line between the bears and the bulls is moving higher and another move above $60K will be a clear sign that the rally is ready to continue higher.