Bitcoin steadies around $57,000 as it records the highest exchange outflow in 2024

• The German Government transferred another 1,000 BTC, valued at $55.8 million, on Monday.
• On-chain data shows that liquidations on Defi platforms exceed $17.94 million.
• Bitcoin Exchange netflow records the highest outflow of 68,498 BTC since November 23, 2023.

 

Bitcoin (BTC) struggles against resistance near the $58,500 level but still trades up 2.93% at $57,515 on Monday. On-chain data shows that liquidations on Defi platforms exceed $17.94 million, and  Exchange netflow records the highest outflow of  68,498 BTC since November 23, 2023. Meanwhile, the German Government transferred an additional 1,000 BTC, valued at $55.8 million, on the same day.

 

Daily digest market movers: Bitcoin marked the highest Exchange outflow in 2024

• According to data from Lookonchain, the German Government transferred 1,000 BTC, valued at $55.8 million, from its wallet on Monday. Of this, 500 BTC, worth $27.9 million, were transferred to Coinbase and Bitstamp.
• Since June 19, the German Government has transferred 13,466 BTC, equivalent to $819.3 million, while still holding 39,826 $BTC valued at $2.29 billion. This notable transfer activity has potentially contributed to FUD (Fear, Uncertainty, Doubt) among traders, likely influencing Bitcoin's recent decline in price over the past few weeks.

• According to CryptoQuant data, Bitcoin Exchange netflow is the difference between BTC flowing into and out of the exchange (Inflow -outflow = netflow).

 

• On Friday, Bitcoin recorded a negative netflow of 68,498 BTC, the highest since November 23, 2023. This surge in outflows, prominently visible on the chart below, indicates a significant movement of Bitcoin away from exchanges, a trend often perceived as bullish by investors. The prevailing sentiment is that major holders are transferring their Bitcoin to wallets, possibly signaling expectations of price increases or a preference for long-term holding rather than immediate selling.

Bitcoin  Exchange Netflow chart

• According to data from Santiment's Defi liquidations on Aave and Compound Finance, the recent BTC price drop from a July 4 peak of $60,498 to a July 5 low of $53,485 resulted in over $17.94 million in liquidations on Defi platforms. Historically, such liquidation spikes are typically followed by market recoveries driven by forced selling and strategic purchasing by key stakeholders.

Santiment Defi Liquidation chart 

 

Technical analysis: BTC faces resistance around $58,500 level

 

Bitcoin's price encountered resistance at the weekly resistance level of $58,375 on Saturday, resulting in a 4% decline the next day. By Sunday's close, it had fallen below the May 1 low of $56,552 and trades around $57,515, 2.93% up on Monday. 

 

If BTC's weekly level at $58,375 acts as resistance, it could decline 5% to revisit the daily support at $52,266.

 

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart support this bearish thesis, as both indicators are below their respective neutral levels of 50 and zero. 

This suggests continued momentum favoring bears, potentially leading to a further decline in the Bitcoin price. 

 

Additionally, if the bears are aggressive and the overall crypto market outlook is negative, BTC could extend an additional decline of 3.3% to retest its February 23 low of $50,521.

BTC/USDT daily chart

 

However, if BTC closes above the $58,375 weekly resistance level and forms a higher high in the daily time frame, it could indicate that bullish sentiment persists. Such a development may trigger a 9.7% rise in Bitcoin's price to revisit its next daily resistance at $63,956.

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