After the bullish rally that allowed the price of Bitcoin to return above $40000 and reach a high of $45501, a pullback should follow. And so it happened. Most traders expected a pullback in the price of Bitcoin, so it did not come as a surprise. After almost 8000 gain, the price of Bitcoin corrected by $1300. At the time of publication, Bitcoin is trading around 43650.
As the price of Bitcoin rises, exchanges record an outflow of coins, which is seen as a positive signal. On January 29, the IntoTheBlock service recorded an outflow of 64000 BTC from exchanges. And after 4 days, we saw the price of BTC return above $40000. Traditionally, the outflow of cryptocurrencies from exchanges reduces pressure from sellers and contributes to the price increase. Based on this, it can be assumed that Bitcoin will continue its bullish rally.
It is worth noting that in May 2021, 130000 BTC were added to the exchanges. As a result, in June-July, the price of Bitcoin fell from $58K to $31K.
On the 4-hour chart, the BTC/USD pair has managed to form an uptrend line, which is supporting the pair in the area of 43200. At the same time, the level of 42000 remains a strong support level. To continue rising, the BTC/USD pair needs to overcome the resistance level of 44000. This will allow it to re-test the area of 44500-45000. A move above this area will start a new bullish rally.