Emily Walker
Recent on-chain analysis indicates that Bitcoin continues to exit the Binance exchange, even after achieving a new peak exceeding $93,000.
Recent Negative Trends in Bitcoin’s Binance Netflow
An analyst highlighted in a CryptoQuant Quicktake article that Bitcoin’s Exchange Netflow on Binance has recently shown negative values. “Exchange Netflow” tracks the net amount of Bitcoin being transferred to or from an exchange’s wallets.
When this metric is above zero, it signifies net inflows, indicating that investors are moving Bitcoin from their private wallets to the exchange, often for selling. Such activity can indicate bearish sentiment for Bitcoin.
Conversely, when the netflow is negative, it reveals that more Bitcoin is leaving the exchange than entering. This trend suggests that investors might be looking to hold onto their assets long-term, which is generally a bullish indicator for Bitcoin’s price.
Below is a chart illustrating the recent Bitcoin Exchange Netflow on Binance over the past month:
The chart shows significant negative spikes in Bitcoin Exchange Netflow on Binance earlier this month as BTC was beginning its most recent rally. This pattern suggests that these accumulation actions may have contributed to the upward price movement.
This week, there has been a shift back into positive netflow as Bitcoin explores new all-time highs (ATH), but in the last 24 hours, a significant volume of Bitcoin has exited Binance once again, totaling approximately 7,600 BTC. This mirrors earlier withdrawal trends observed this month.
The latest outflows align with Bitcoin reaching its new all-time high, suggesting there remains a strong demand for the cryptocurrency even at high price levels. This trend could signal continued bullish momentum for the rally. However, monitoring this indicator remains crucial.
The earlier shift to positive netflow showed modest inflows, but if there is a significant surge in tokens entering the platform again, it could indicate profit-taking that might threaten the current rally.
Current BTC Price
Bitcoin achieved a new record above $93,000 yesterday; however, a pullback has occurred, and the price is now around $91,100.