Bitcoin News: Why Continued Outflows Are The Strongest Bullish Signal Ever

Bitcoin’s value, like any asset, is based on supply and demand If there is more supply than demand, price decreases. If demand outweighs supply, price appreciates.

Because the total BTC supply is so scarce, when demand reaches peak levels, price action goes parabolic to compensate for the complete lack of available supply.

Coinbase outflows of this size and more, have each time preceded a sizable bullish impulse and price increase. Outflows around early February, early January, and around Christmas all met or exceeded the total BTC leaving Coinbase yesterday.

However, the overall reserves of BTC one exchanges still continue to dry up over time so little supply to go around, and demand not yet ready to wane, the cryptocurrency could see a dramatic rebound from here.

Technicals do hint that price action is overheated but the most recent correction could be enough of a pullback to allow Bitcoin’s wildly bullish fundamentals take back over and send prices soaring again.

Speculation on where the “top” of the current bull market uptrend lies ranges from $100,000 per coin to as high as $325,000 per BTC. At the current rate of appreciation, however, the low end of the range could end up selling the cryptocurrency a coin or two short.