Bitcoin has once again found its way above $28,000 despite widespread uncertainty in the crypto market. This recent bullish move follows the news that Binance and its CEO Changpeng Zhao were sued by the Commodity Futures Trading Commission (CFTC), which led to a large withdrawal from the exchange.
$660 Million In Bitcoin Flows Out Of Centralized Exchanges
In the past week, there has been a significant amount of Bitcoin flowing out of centralized exchanges such as Binance and Coinbase. This outflow coincides with heightened regulatory scrutiny surrounding crypto companies and exchanges as regulators seek to impose real rules on these companies.
Data from Coinglass shows that in the last seven days, more than 23,542 BTC flowed out of the exchange. At current prices, this is roughly $660 million in BTC that has left the balance of the centralized exchange.
Many of these outflows have occurred in the last few days. On Tuesday, Binance saw only about 4,750 BTC withdrawn in 24 hours as investors moved into the coin fearing a possible collapse.
BTC balances on exchanges decline | Source: Coinglass
The total BTC exchange balance is also in a steady downtrend as it has dropped 15,049 BTC in the last 30 days and recorded another 5,202 BTC loss in the last day. This brings the total number of Bitcoins in the exchange to 1,904,189, around 10% of the total circulating supply.
BTC Sets Sights On $29,000
With the number of BTC leaving the exchange, the digital asset has been able to regain its bullish trend. In the last day, it crossed $28,000 and is now set to retest the $29,000 resistance. This rapid Bitcoin growth suggests that $30,000 is more likely to be recaptured at this point as momentum continues to build.
BTC price trading above $28,000 once more | Source: BTCUSD on TradingView.com
The price of Bitcoin has risen by more than 5% and another 5% move from here will push the asset to $30,000. If BTC can comfortably beat $30,000, then it will signal that the bull market is back, and the ride up begins.
However, there is still significant resistance attached at $29,000 as the bears are not giving up easily. After that, $30,000 will be a tougher level to beat because of the importance of the bull market. However, BTC’s climb above $28,500 has shown that the bulls now have the upper hand.
At the time of writing, BTC is changing hands at $28,539. Its trading volume has exceeded $20.9 billion, representing a 12% increase over the last day.