Bitcoin (BTC) Exchange Withdrawals Spike, See Third-Largest Net Outflow of 2024

Bitcoin bulls may have temporarily run out of steam, but behind the scenes, there is already interest in “buying the dip.”

Bitcoin Price Spikes Interest in ‘Buying the Dip’ as Exchanges See Major BTC Outflows

Bitcoin ( BTC ) is seeing a fresh round of exchange withdrawals as its price action shifts toward $60,000.

Data from onchain analytics platform CryptoQuant shows preliminary net outflows of 45,000 Bitcoin from exchanges on August 27.

Bitcoin exchanges see major withdrawal spike

Bitcoin bulls may have temporarily run out of steam, but behind the scenes, there is already interest in “buying the dip.”

According to CryptoQuant, August 27 is currently on track to seal the third-largest net exchange outflow of 2024. The current total net outflow is just under 45,000 BTC, putting the day behind July 5 and July 16, which saw net outflows of around 52,000 BTC and 68,500 BTC, respectively.

In part of a dedicated Quicktake blog post on the topic, contributing analyst Amr Taha commented:

“The last time a large amount of BTC was withdrawn from exchanges was on July 16. The price of BTC started to increase the following day, reaching a high of $64,966 on August 16. After that, the price of BTC dropped again, reaching a low of $56,833 on August 23.”

The exchange outflows come as BTC/USD stalls following a sell-off from multi-month highs above $65,000. The sell-off began after the United States Federal Reserve announced plans to begin reducing pandemic-era stimulus measures.

As a result, Bitcoin traders have been closely watching the price action for signs of a bottom. Some traders believe that the sell-off could continue, pushing BTC/USD below $60,000, while others are optimistic that the buying pressure will return soon.

The withdrawal is reflected in the overall BTC balance of major trading platforms tracked by CryptoQuant. Exchanges now hold approximately 2,633,391 BTC as of August 27 — 12.5% less than the 3,011,975 BTC held on January 1.

BTC price “looking grim” as sell-off builds

As Cointelegraph reported, the short-term trading landscape is nonetheless frustrating for bulls after several failed attempts to break through $65,000.

While up 40% from its August low, BTC/USD continues to lack the buying power to fuel a return to levels even vaguely near all-time highs.

“$BTC back to $53k?” popular trader Justin Bennett suggested in an X post on the day.

Other traders continue to plan for a deeper BTC price retracement below $60,000.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.