Decentrader co-founder in the person of Philip swift has aligned himself with the bbitcoin analysis of an expert, on the premise that there is sentiment on the bullish bitcoin exchange outflow for the past few months. It is pertinent to add that over the past few months, Bistamp and Coinbase has experienced distinctive drawdown in their balance exchange balances since the Mid-December, 2020.
The reduction in the available BTC is being driven by institutions and people keeping bitcoins in cold storage, thereby taking it off the market and which decreases the available liquid supply to quickly sell in the market and also the change of rapid sell off decreases.
Wrapped into WBTC and put into DEfi protocols, is the large amount of BTC being pulled off exchanges as observed by Swift. Also, the tokens aren’t fully removed from circulation and put into cold storage, which reduces the bullish narrative and which in turn means that liquidity hasn’t really been reduced.
The comparison between Bitcoin being held for one of two years as compared to being held for three more years I another interesting signal discussed by Decentrader.
At short term, the BTC in recent weeks held for less than three years have started to be sold as holders of short term begin to take profits. Bitcoin investors that have been holding for three years have actually been accumulating recently and according to Swift, this signals that in the current Bull cycle, Bitcoin still likely has a lot more upside to go’.