On-chain data shows that Bitcoin continued to move out of cryptocurrency exchange Binance even after its last high above $93,000.
Bitcoin Binance Netflow has seen negative spikes recently
As pointed out by an analyst in a CryptoQuant Quicktake article, Exchange Netflow for Binance has seen negative values recently. “Exchange Netflow” here refers to an indicator that tracks the net amount of Bitcoin flowing into or out of the wallets of a given exchange or group of platforms.
When the value of this metric is greater than zero, it means that investors are transferring a net number of tokens from their self-custodial wallets to the addresses attached to the exchange. Since one of the main reasons investors use these platforms is for selling purposes, this type of trend can be bearish for BTC.
On the other hand, the indicator being negative suggests that the stock market is observing the outflow of a net amount of the asset. Such a trend may be a sign that holders want to HODL in the long term, which can naturally be bullish for the cryptocurrency’s value.
Now here is a chart that shows the Bitcoin Exchange Netflow trend specifically for the Binance platform over the past month:
The value of the metric appears to have been deep red in recent days | Source: CryptoQuant
As seen in the chart above, Bitcoin Exchange Netflow for Binance saw significant negative spikes earlier this month as the final leg of BTC’s rally had begun. Given the timing, it is possible that these significant accumulation movements helped fuel the rise.
This week, the metric saw a reversal into positive territory as the cryptocurrency’s all-time high (ATH) exploration continued, but over the past day, a huge amount of BTC once again left Binance . Specifically, investors withdrew approximately 7,600 BTC from the exchange with these outflows, which is of a similar magnitude to the withdrawals seen earlier in the month.
The latest net outflows occurred as the asset reached its most recent high, meaning there is significant demand for Bitcoin even at these high rates. This can naturally be a positive sign for the sustainability of the rally. That said, the indicator could still be one to watch.
The reversal into the positive region has previously resulted in net inflows of a limited scale, but if another push into the zones sees a significant amount of tokens entering the platform, this could indicate profit taking of a level which can pose a threat to the race.
BTC Price
Bitcoin set a new record high above the $93,000 level yesterday, but it appears the asset has seen a pullback since then, with its price now trading around $91,100.
The trend in the BTC price over the last five days | Source: BTCUSDT on TradingView
Featured image of Dall-E, CryptoQuant.com, chart from TradingView.com
