On-chain data shows that the Binance exchange has received large net inflows of bitcoin over the past day, indicating that the btc drop may extend further.
bitcoin price on Binance Netflow has reached positive values
In a new x.com/JA_Maartun/status/1816438451857691058″ target=”_blank” rel=”noopener nofollow”>mail At x, CryptoQuant community manager Maartunn discussed the latest trend in bitcoin exchange network flow for cryptocurrency exchange Binance.
The term “net exchange flow” here refers to an on-chain metric that measures the net amount of bitcoin entering or leaving the wallets associated with a given exchange. The indicator’s value is calculated by subtracting the outflows from the inflows.
When the metric value is positive, inflows outweigh outflows and a net amount of tokens enters the platform. As one of the main reasons investors deposit into exchanges is to sell, this trend can be bearish for btc.
On the other hand, the negative indicator suggests that the exchange is seeing net withdrawals currently, which may be a bullish sign for the cryptocurrency in the long run as it implies that investors are potentially taking coins for their own safekeeping for HODLing.
Now, here is a chart showing the trend in bitcoin net exchange flow specifically for Binance over the past week:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/07/Bitcoin-deposits-on-Binance-are-increasing-are-the-sales-not.jpeg" alt="Netflow bitcoin Exchange” width=”4000″ height=”2250″/>
The value of the metric appears to have been positive in recent days | Source: x.com/JA_Maartun/status/1816438451857691058/photo/1" target="_blank" rel="noopener nofollow">@JA_Maartun on x
As shown in the chart above, the net flow of bitcoin exchange Binance has maintained positive values during the recent drop in the cryptocurrency price, suggesting that the platform has been receiving net deposits.
Interestingly, the metric has been recording positive values even after the price decline stopped, and its peaks have only been bigger. This could mean that whale entities are only planning to sell more, which could be bad news for the asset.
So far, bitcoin has seen some recovery since these net inflows appeared on the number one cryptocurrency exchange by trading volume, implying that whales may not have pulled the trigger on their selling yet.
It remains to be seen whether these deposits have a bearish effect on the asset, thus prolonging the fall, or whether they have made the deposits for purposes other than selling.
In other news, an old bitcoin whale appears to have moved a lot of tokens in the last day, as Maartunn noted in another x article. x.com/JA_Maartun/status/1816470659738067425″ rel=”nofollow” target=”_blank”>mail.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/07/1722002979_684_Bitcoin-deposits-on-Binance-are-increasing-are-the-sales-not.jpeg" alt="bitcoin Spent Output Age Bands” width=”4000″ height=”2250″/>
The data for the transactions of coins that are more than ten years old | Source: x.com/JA_Maartun/status/1816470659738067425/photo/1" target="_blank" rel="noopener nofollow">@JA_Maartun on x
This bitcoin whale has transferred 700 btc (about $45.4 million at current exchange rates), which have been sitting idle for over ten years.
btc Price
bitcoin plummeted to $63,400 during its latest decline, but the asset has since recovered to $64,800.
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Looks like the price of the asset has been going down recently | Source: BTCUSD on TradingView
Featured image by Dall-E, CryptoQuant.com, chart by TradingView.com
