On-chain analytics firm Santiment reported that nearly $1.56 billion worth of 40,785 bitcoin moved off exchanges in the past week. Bitcoin climbed to an intraday high of $39,104 on Feb. 1, indicating a shift in sentiment from pessimism.

👍 $40,785 in BTC was transferred from exchanges this past week. This is the highest week of #Bitcoin exchange outflows since the second week of September. Historically, the continued trend of tokens moving to cold wallets favors long-term price action. https://t.co/NsVJGWZkIK pic.twitter.com/Pg37mqfFVr

– Santiment (@santimentfeed) January 31, 2022

According to CoinMarketCap, BTC is up 4.63% in the last 24 hours, while Ether is up 8.66%. Bitcoin has historically produced positive returns in February, a fact that may come as a relief to bullish traders.

The leading asset ended the last day of January in the green thanks to a recent uptrend. At the time of writing, Bitcoin is trading at around $38,598, making up for the previous 7 days of losses and a 7% gain over the last week.

Bitcoin saw its largest week of coin withdrawals from exchanges since the second week of September, after 40,785 bitcoins were withdrawn from exchanges the previous week, according to Santiment. It noted that the continued trend of tokens moving to cold wallets represents a historically strong indication of long-term price action.

This is because whale investors typically move cryptocurrencies from exchanges when they intend to hold them for the long term. This suggests that bitcoin investors are bullish. U.Today reported earlier that Salvadoran President Nayib Bukele predicted that "it's only a matter of time before the price of bitcoin rises significantly due to constrained supply."

Market Sentiment Improves

The Cryptocurrency Fear and Greed Index shows that market sentiment is still fearful at the time of publication, with a score of 26 out of 100. This marks a slight improvement from yesterday's "extreme fear".

Bitcoin is moving towards the top of its one-week trading range as signs of oversold conditions remain solid. At the time of writing, bitcoin has reached an intraday high of $39,104. Initial resistance is at $41,419; therefore, buyers will need to make a significant move between $40,000 and $45,000 in order to reverse the slump seen since November.

For now, BTC's 16.7% price drop in January could attract short-term buyers if support is around $37,000.