Emily Walker
Recent on-chain data indicates that Bitcoin’s netflow on Binance has shifted to a negative state. This development could influence the asset’s pricing moving forward.
Recent Decline in 14-Day SMA Bitcoin Binance Netflow
A CryptoQuant Quicktake article details the recent trends observed in the 14-day simple moving average (SMA) of Bitcoin’s Exchange Netflow specifically for Binance.
The term “Exchange Netflow” is used to describe a metric that monitors the overall volume of cryptocurrency being deposited into or withdrawn from wallets linked to a particular centralized exchange.
A positive netflow suggests that more investors are depositing coins onto the exchange, which often indicates a potential sell-off, thus leaning towards a negative market outlook for the asset. Conversely, if the netflow is negative, it indicates a higher volume of withdrawals, signaling that investors might be accumulating assets, often interpreted as a bullish signal for price movement.
Below is a chart illustrating the recent trends in Bitcoin Exchange Netflow for Binance, alongside the 14-day SMA over the past few months:
The chart shows a significant drop in the Bitcoin Exchange Netflow for Binance, indicating that investors have been withdrawing a substantial amount of tokens from the exchange in recent days.
For the latter half of last month, the metric predominantly remained positive, allowing the 14-day SMA to stay above zero.
The analysis highlights previous occurrences of the 14-day SMA reflecting similar trends over recent months, typically resulting in short-term declines for the asset. The recent inflows onto the platform also corresponded with a downturn in Bitcoin’s price.
Following the latest noticeable decrease in the daily Binance Exchange Netflow, the 14-day SMA has subsequently turned negative.
Historically, a positive swing in this indicator precedes minor short-term price drops, while a move into negative territory tends to correlate with upward price activity. Therefore, Bitcoin seems to be poised for potential upside based on this indicator.
In summary, users have withdrawn a total of 5,407 BTC into their personal wallets amid the latest negative trend in the Binance Exchange Netflow.
BTC Price Update
Bitcoin has experienced a pullback in its recent upward movement, with its price now settling below the $98,000 threshold within the past 24 hours.