October 3, 2022

Turning point $188 Billion In Bitcoin Value Moves Across Network

3 min read

Bitcoin has yet again broken another milestone. The leader cryptocurrency has seen the volume of BTC moving across its network boost tremendously. This time, the seven-day moving average of BTC volume on the network has broken a record. Volume from this shows that since yesterday, $188 billion had actually been moved across the network. This implies that roughly 20% of the Bitcoin market cap was moved.

chart showing seven-day moving average of bitcoin volume has hit $188 billion

 BTC transfer volume strikes$188 billion turning point|Source: Twitter The number of coins crossed the network for the seven-day moving average is roughly 3.6 million bitcoins. Going by today's prices. The number accounts for both deals moving in between individual wallets. And volume transferring to and from exchanges. Showing that BTC is not decreasing in its adoption. If anything, this reveals that BTC is getting more traction in the crypto space.

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Bitcoin To Shoot Higher With Volume

This movement sets bitcoin up for a rapid move upwards. Bitcoin's cost has actually constantly experienced an uptick in price whenever the volume shoots up. The chart listed below compares the different times when volume on the network has actually surged compared to the price at that point. An increased volume has constantly coincided with an increase in the rate.

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An essential point to note is this. While transaction volume is up, on-chain activity has actually been down. This suggests that most of this volume has come from big relocations from a small number of wallets. Rather than little relocations from a high variety of wallets. The on-chain information likewise puts that as about 10K and 12K bitcoins being moved at the same time from one wallet to another. Probably movement from exchange wallets.

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A more vital situation would have been if there were a variety of little deals comprising this volume. It would mean that specific investors were really moving their bitcoins across the network. And the instructions of these bitcoin transactions would provide better indications for the total market sentiments at that point. However, an uptick in negotiated volume tends to press the cost upwards.

Ready For Another Breakout?

BTC looks ready for another $50K retest from here on out. Indicators show current dip may be bottoming out. Priming the digital asset for another test of its recent high. Exchange reserves continue to trend low, revealing that financiers are still taking out their BTC off of exchanges instead of selling.

Bitcoin (BTC) price chart from TradingView.com

BTC prepared for another$ 50K retest|Source: BTCUSD on TradingView.com Existing motion patterns throughout the network still indicate investors holding their coins off of exchanges. Streaming the opposite method that assets would typically flow in a booming market. This debt consolidation of BTC properties for long-term holding will definitely see an increase in the price.

Bitcoin price has actually now returned to a recovery pattern after the last dip pushed it back down. Resistance at $47,500 is primed to follow this healing from here. Market momentum will more than likely be the defining element of the next breakout.

Included image from CNBCTV18, charts from Twitter and TradingView.com