Bitcoin Bearish Signal: Binance Observes Massive Inflow Of 10k BTC
January 27 2022 - 2:00PM
NEWSBTC
Bitcoin on-chain data shows the crypto exchange Binance
observed large inflows amounting to almost 10k BTC yesterday.
Bitcoin Netflow Shows A Huge Positive Spike As 10k BTC Enters
Binance As pointed out by an analyst in a CryptoQuant post, the BTC
netflow had a big positive spike yesterday, a sign that’s usually
bearish for the price. The “all exchanges netflow” is an indicator
that measures the net amount of Bitcoin entering or exiting wallets
of all exchanges. The metric’s value is simply calculated by taking
the difference between the inflows and the outflows. When the
indicator has positive values, it means there are currently more
inflows happening than outflows. Such a trend is often bearish as
investors usually deposit their Bitcoin for selling purposes. On
the other hand, when the value of the metric is negative, it
implies outflows are overwhelming inflows as a net amount of BTC is
exiting exchanges. This kind of trend can be bullish for the price
of the crypto as holders generally withdraw their coins to hold
them. Related Reading | Bitcoin Leverage: Lack Of Liquidations
Could Indicate Another Wave Of Selling Now, here is a chart that
shows the trend in the Bitcoin netflow over the last couple of
months: Looks like the value of the metric showed a huge positive
spike recently | Source: CryptoQuant As you can see in the above
graph, yesterday the Bitcoin netflow showed that almost 10k BTC
entered exchanges yesterday within an hour. A look at the chain
data reveals these inflows were to Binance. Interestingly, just a
few hours later, the crypto exchange Gemini observed an outflow of
about 10k BTC, cancelling out these inflows and making the netflow
neutral again. The negative spike makes up for the positive one
from a few hours earlier | Source: CryptoQuant As mentioned
earlier, inflows are usually bearish for the price of Bitcoin.
However, since outflows of the same amount occurred just a couple
of hours later, the netflows effectively became neutral. Related
Reading | Anthony Scaramucci Urges Bitcoin Holders To Think
Long-Term As Downtrend Won’t Last Now, outflows can be bullish for
the price if they occurred for the purpose of accumulation. But
that doesn’t necessarily have to be the case. If the investors who
were behind the withdrawal intend to sell them through OTC deals,
the effect on the price may be bearish instead. BTC Price At the
time of writing, Bitcoin’s price floats around $36.8k, down 12% in
the last seven days. The below chart shows the trend in the value
of the coin over the last five days. BTC's price has retraced a lot
of the recovery that it made over the last few days | Source:
BTCUSD on TradingView Featured image from Unsplash.com, charts from
TradignView.com, CryptoQuant.com
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