On-chain data shows that Binance saw bitcoin inflows of nearly $200 million a couple of days ago as btc saw btc fall below $27,000.
Binance Has Recently Received Large bitcoin Deposits
As analyst James V. Straten noted in a mail In X, there have recently been inflows on the Binance cryptocurrency exchange. The relevant indicator here is “net exchange flow volume,” which tracks the net amount of bitcoin flowing into or out of the wallets of a given centralized exchange.
When the value of this metric is negative, it means that the exchange is experiencing outflows of a net amount of coins right now. Since investors typically withdraw their coins from platforms like these to hold them for long periods in self-custody wallets, this type of trend can be bullish for the price.
On the other hand, the fact that the indicator is positive implies that holders are currently making net deposits on the platform. These entries can occur for selling, so the metric having such a value can sometimes portend a bearish outcome for the asset.
Now, here is a chart showing the trend in bitcoin exchange net flow volume to Binance over the last month:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Binance-Recorded-Bitcoin-Inflows-of-200-Million-as-BTC-Dropped.jpeg" alt="bitcoin net flow” width=”1010″ height=”548″/>
The value of the metric seems to have been positive in recent days | Source: @jimmyvs24 on X
As shown in the chart above, the Binance bitcoin exchange net flow has recorded some positive spikes over the past few days. Straten notes that a couple of days ago, the exchange recorded a particularly large btc inflow of almost $200 million.
Interestingly, on the same day of those deposits, btc had recorded its drop below the $27,000 level. Therefore, it is possible that those large inflows were signs of dumping.
As the analyst highlighted on the chart, it appears that inflows have started to rise once again on Binance over the past day. It is currently unclear what the intention behind these new deposits may be, as they were made while btc was already trading at its lows.
They could be from panic sellers who believe that more declines are coming, so they are trying to get out of here to at least avoid more losses, or perhaps, they can be for other purposes, such as opening new positions in the futures market.
You can see from the chart that the spikes in the indicator have not always been bearish for the price, as those particular cases may have seen entries for other reasons.
Now it remains to be seen if these latest entries will also turn out to be bearish like those of two days ago, or if they will be neutral for the market, like the few events already observed last month.
btc Price
bitcoin has been unable to recover since its last drop as the asset is still trading around $26,800.
<img decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/1LgZcGIe/" alt="bitcoin price chart” width=”1534″ height=”869″/>
Looks like btc has been trading sideways since its plunge | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, Charts from TradingView.com, Glassnode.com
