According to CryptoQuant, the amount of bitcoin (BTC) transferred from Coinbase Pro has reached a total of 13,390.28 BTC.
Significant outflows from Coinbase came despite the BTC price hovering at around $49,000. It suggests the U.S. institutional investors expect BTC to make a new high after a considerable drop to a low of $47,400 on Feb. 22.
A Bullish Signal?
As CryptoQuant CEO Ki Young Ju noted, all transferred bitcoins went to Coinbase custody wallets. He explains that institutions keep purchasing BTC in anticipation of the next Bitcoin bull run.
Similarly, Coinbase registered total outflows of over 15,200 BTC on Jan. 31.
In a relevant Twitter thread, Ju revealed a further split into custody wallets containing between 1,000 and 5,000 BTC. He also said such withdrawals were “likely to be OTC deals from institutional investors.”
Ju is confident the massive BTC outflows are a bullish sign for the flagship cryptocurrency. He states that “if Coinbase moves a significant amount of Bitcoins to other cold wallets, it indicates OTC deals,” or non-exchange transactions. He added:
“Since the price is eventually determined on exchanges, massive non-exchange transaction volume is considered as a bullish signal. These transactions include OTC deals”
BTC Long-Term Trend Remains Unclear
At the time of writing, bitcoin has broken out from a short-term descending resistance line. Currently, it is trading at around $51,000 bouncing back from the 24h low of $48,106.05, according to CoinGecko.
However, while BTC is still fluctuating above the $46,100 support area, technical indicators are not enough to confirm a breakout above $56,000 yet.
Now, BTC is in wave four of a bullish impulse that began on Jan. 30, following the end of the first part of the correction, which came with the Feb. 22 low. Although Bitcoin’s short-term trend appears bullish, the question is whether the price is actually heading to new heights.