Bitcoin price has risen in rapid movements in recent months, breaking the $18,000 level in the past two days for the first time since December 2017.

For most of bitcoin’s history, the price spike has coincided with more bitcoin flowing into the major trading platforms.

Meaning when there is a price hike, there is usually also a big spike in the number of bitcoins traded on the exchanges.

But this time for the first time, we’re seeing quite the opposite.

Which is the only weird thing about bitcoin’s recent rally.

Bitcoin rises as its number decreases in cryptocurrency exchanges:

One Bitcoin analyst with the nickname “Typerbole” tweeted:

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Previous price peaks have coincided with more bitcoin pouring into exchanges (highlighted in green in the chart below), while this latest sustained rally is taking place in an unprecedented period of bitcoin withdrawals from exchanges.

Previous price peaks coincided with Bitcoin’s flows *to* exchanges (in green), while this continued rally is taking place in an unprecedented period of net withdrawals from exchanges.

We are in the midst of an era of chaos.

free woonomic for this idea pic.twitter.com/MGTTS8YCrU

– typerbole November 16, 2020

Like we indicated in the previous paragraph if we look at the history of Bitcoin, we usually see a correlation between the price increase and the flow of Bitcoin to the major trading platforms.

For example, during the famous rise of Bitcoin at the end of 2017, the flow of Bitcoin to all trading platforms jumped from 3,087 BTC to 38,402 BTC in just 24 hours.

Another example of the Bitcoin price movement and the movement of Bitcoin towards the trading platforms, we can mention what happened between June 15, 2019 and June 30, 2019, when Bitcoin deposits increased from 859 BTC to 21,551 BTC.

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During the same period, the price of Bitcoin increased from around $8,300 to $10,800.

There was a very strong relationship, whether causal or causal, between the inflows of Bitcoin to cryptocurrency exchanges and the rise in the price.

But not anymore.

This time, the price of Bitcoin does not match the amount of Bitcoin sent towards the exchanges, rather the opposite is what happens where the Bitcoin is withdrawn en masse from the exchanges.

Since this bullish trend began in August, the chart shows several significant drops in bitcoin deposits to exchanges.

An example of this is what happened between October 22 and October 27, 2020, when the bitcoin price rose from $12,900 to $13,600.

During this time, Bitcoin withdrawals increased from 704 BTC to 13,130 BTC.

Then, on November 2, when Bitcoin was flat at $13,000, the net withdrawal dropped to 26,997 BTC.

However, these mass withdrawals are not a sign that trust in Bitcoin is low, rather the opposite and may suggest that many users are heading towards long-term investment by storing Bitcoin in offshore wallets.

Bitcoin price increased by 154% in 2020.

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– Bomb (APompliano) November 18, 2020

The price of Bitcoin has increased by 154% in 2020 alone, so there is no doubt that the Bitcoin market is currently a bull market.

Bitcoin price increased by 154% in 2020.

– Bomb (APompliano) November 18, 2020

Many analysts claim that Bitcoin’s exit from the trading platform is a positive sign.

As Bitcoin analyst Cole Garner tweeted:

The balance on the trading platforms keeps dropping, it’s a great sign.

3/ The balance on the stock exchanges continues to decline.

great mark 🔥

Data >> Tweet embed pic.twitter.com/BhgCVYeAvB

– ColeGarnerBTC November 18, 2020

Lucas Huang, Head of Growth at Tokenlon, explained:

People keep bitcoins in exchanges when they plan to sell.

Therefore, large amounts of bitcoin withdrawn and small amounts in deposits indicate positive sentiment in the market.

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