Bitcoin holders show ‘stronger’ conviction despite BTC price losing $68K level

Bitcoin (BTC) dropped toward $67,000 during the European trading session on Friday despite an increase in long-term buying. Exchange withdrawals also increased to 16-month highs, suggesting reduced “immediate selling pressure,” a new analysis said.

Key takeaways:

• Bitcoin withdrawals from exchanges increases, reducing BTC available for sale.

• Long-term holders accelerate accumulation, adding 155,450 BTC over the past 30 days.

• Bitcoin analysts view $65,000–$66,000 as a potential support zone for a bounce.

Bitcoin supply tightens as long-term buying accelerates

CryptoQuant’s exchange flow data highlighted “renewed signs of supply tightening,” as large Bitcoin withdrawals continue across major exchanges. 

The chart below shows that investors withdrew nearly $1.6 billion of BTC from Bitfinex on March 16, as shown by the orange bar in the chart below.

Related: Bitcoin floor ‘near $70K’ as TradFi returns: Will war, inflation break their belief?

Since then, the trend has expanded across other major exchanges, with a $678 million withdrawal from OKX on Sunday, a $728 million withdrawal from Kraken on Monday, and another $400 million in BTC leaving Binance on Wednesday.

“This pattern suggests that the latest wave of withdrawals is no longer isolated to one platform,” CryptoQuant analyst Amr Taha said in his latest QuickTake analysis. 

The figures support the latest data showing Bitcoin whales and sharks have been accumulating over the last two months, a pattern that could trigger an eventual breakout from the range. 

Other data also reflects an accumulation phase, as long-term holders (LTHs), investors who have held Bitcoin for more than 155 days, ramped up buying.

The LTH net position change has been positive since March 5, as about 155,450 BTC has been bought over the past 30 days.

In other words, holders are buying more on the dips, including the latest one below $68,000.

When Bitcoin leaves exchanges while LTHs expand their positions, it “usually signals lower immediate sell pressure and stronger conviction from investors with a longer time horizon,” Amr Taha said.

If this trend continues, the market could be entering another phase where tightening sell-side liquidity and stronger LTH demand “create a more supportive backdrop for price,” the analyst added.

Bitcoin price to revisit $65,000 before bounce

As Cointelegraph reported, $70,000 remains the key for the Bitcoin bulls and that losing it could trigger the next leg down.

The BTC/USD pair was trading below $67,000 at the time of writing, below the 50-day simple moving average (SMA) and the 200-week exponential moving average (EMA).

Bears will attempt to push the price toward the $65,000-$63,300 demand zone, with a deeper focus on the range low below $60,000, reached on Feb. 6.

“It’s quite clear that there’s not enough strength for the markets to move higher after that rejection at $75K,” MN Capital founder Michael van de Poppe said in a recent X post.

An accompanying chart suggested that the price was seeking to print a higher low within the $65,000 to $66,000 range, failing which “we’ll start to see an acceleration downwards,” van de Poppe said, adding:

“I would be looking at longs in the lower-$60K range.”

The Glassnode liquidity heatmap highlighted “stronger” whale bid orders near $65,000, suggesting that the BTC price could retest this area before a bounce.

As Cointelegraph reported, a break and close below the ascending trend line at $68,000 could result in Bitcoin price dropping toward $60,000, where it could consolidate next.