On-chain data shows that bitcoin net flow on Binance has recently turned negative. Here's what this could mean for the asset's price.
Binance Net Flow of bitcoin 14-Day SMA Has Plunged Recently
In a quick shot from CryptoQuant mailAn analyst has discussed the trend in the 14-day simple moving average (SMA) of the bitcoin Exchange Netflow for the Binance platform.
“Net exchange flow” here refers to an indicator that tracks the net amount of cryptocurrency flowing into or out of wallets associated with a given centralized exchange.
When the value of this metric is positive, it means that investors are depositing a net amount of coins on these platforms. Since one of the main reasons holders would transfer to exchanges is for selling-related purposes, this type of trend can lead to a bearish outcome for the asset.
On the other hand, the fact that the indicator is negative implies that there are more exits than entries into the stock market. This trend may be a sign that investors are accumulating, which may prove bullish for the price of the coin.
Now, here is a chart showing the trend in bitcoin Exchange Netflow for Binance, as well as its 14-day SMA, over the past few months:
<img data-recalc-dims="1" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2025/01/Bitcoin-Binance-Netflow-Turns-Negative-What-It-Means.png" alt="bitcoin Binance Net Flow” width=”1280″ height=”720″/>
The value of the metric appears to have seen a sharp negative spike recently | Source: CryptoQuant
As shown in the chart above, the net bitcoin exchange flow for Binance saw a sharp negative increase over the past day, implying that investors have withdrawn a large amount of tokens from the platform.
During the second half of last month, the indicator remained mostly within the positive territory, resulting in the 14-day SMA reaching a value above zero.
On the chart, the quant has highlighted instances of the 14-day SMA showing this trend in recent months. It would appear that the pattern has generally led to short-term declines in the asset during this period. The latest entries to the platform were also accompanied by a drop in the price of bitcoin.
However, after the latest strong negative spike appeared on the daily version of the Binance Exchange Netflow, its 14-day SMA value also fell back into the red zone.
While a rise into the positive territory precedes a short-term decline in the asset, a fall into the negative region typically leads to bullish price action. Therefore, bitcoin may currently be well positioned in terms of this indicator.
In total, the exchange's users have taken a net amount of 5,407 btc into self-custody during the latest negative spike in Binance Exchange net flow.
btc Price
bitcoin has retraced its last rally over the past 24 hours as its price has fallen below the $98,000 level.
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Looks like the price of the coin has already shed its gains from yesterday | Source: x/G87Rp8I5/" target="_blank" rel="noopener nofollow">BTCUSDT on TradingView
Dall-E Featured Image, CryptoQuant.com, TradingView.com Chart
