- 7,883 BTC Bitcoin whales are demonstrating strong accumulation and holding behavior, withdrawing BTC from Coinbase.
- Investors keep moving assets off exchanges, reducing it to 2.4M BTC exchange reserves, the lowest in years.
- Bitcoin reclaimed $109,874 after recovering from Trump’s EU tariff delay.
A major Bitcoin exchange outflow of 7,883 BTC from Coinbase to an unknown wallet was recorded on May 26, which could mean the whales are accumulating. The withdrawal from Coinbase came at a time when there was also a sharp trend of net outflow, with Coinbase seeing just a single-day net movement of -8.7K BTC, which is one of the highest in the quarter.
This narrative is supported even further by the continued decline in total Bitcoin reserves across all exchanges. This puts exchange reserves as of May 27 around 2.4 million BTC, down from over 3.4 million in mid-2022. This long-term downtrend implies that more and more investors prefer self-custody, akin to holding behavior and conviction on a long-term bullish basis.
During price rallies, outflows have frequently spiked and current outflow levels are high. While recent price volatility has surfaced driven by macroeconomic developments, the trend shows that institutions and large holders are lining up for further price upside.
Trump’s Tariff Pause Calms Markets
Donald Trump’s announcement to delay the 50% tariff on European Union imports had a modest impact on market sentiment. The date of implementation was pushed back from June 1 to July 9, taking a breather from what would have been a new wave of global trade wars.
After Friday’s announcement, bitcoin fell 3.9% but quickly recovered. On Monday, the price recorded on Bitstamp rose from a low of $107,562 up to $109,874. Both Asia and Europe echoed the move in equities and crypto markets, a coordinated risk on reaction.
The tariff delay is only temporary, but it did relieve immediate pressure on financial markets. Investors used this dip as a buying opportunity, as evidenced by whale accumulation and lowered BTC exchange supply.
Technical Indicators Suggest Momentum Remains Intact
On the technical side, Bitcoin is trading at around $110,000. Relative Strength Index (RSI) is 69.22, with a bit below the overbought mark. This is strong, bullish momentum that’s not yet exhausted. The MACD also confirms a short term uptrend, that is showing a positive gap between the MACD line (3,843) and signal line (3,718).
However, strong network engagement still shows with high active sending and receiving addresses. The sending addresses fluctuate above 750K daily, and the receiving addresses are above 460K, which is a very high stat. The levels are indicative of solid transaction volume and user participation that prop up the current rally.
Exchange outflows remain an important metric to keep an eye on. The market is showing signs of supply tightening, the latest being consistent spikes above 100K BTC per week with multi-year low exchange reserves, which could eventually set up another breakout.
