Bitcoin buying pressure could surge amid rising exchange withdrawals

In the context of the volatile Bitcoin market of the past year, a key trend identified in previous CryptoSlate analyses has emerged: the rapid increase in exchange withdrawals for Bitcoin since November 2022. According to Glassnode, this trend has gathered pace since April 2023, resulting in over 100,000 BTC being withdrawn from exchange balances since April 18.

Understanding the balance of Bitcoin on exchanges is crucial for gauging market sentiment. Increased deposits typically signal a potential sell-off as investors move their Bitcoin to exchanges to liquidate. Conversely, increased withdrawals often indicate a bullish sentiment as investors move their Bitcoin off exchanges for holding or usage, reducing the available supply for trading.