Recent on-chain data reveals a significant uptick in Bitcoin inflows to the Binance exchange over the past 24 hours, hinting that Bitcoin’s recent price drop could continue.
CryptoQuant’s Maartunn highlighted a key trend in Binance’s Bitcoin netflow on X. This metric, which measures the difference between Bitcoin inflows and outflows on an exchange, has recently turned positive for Binance.
Netflow on Binance (inflow minus outflow) is heavily positive in the most recent hours.
Hmm 🧐 https://t.co/NAJVZ8bfuO pic.twitter.com/jhXQj5HHNr
— Maartunn (@JA_Maartun) July 25, 2024
A positive netflow indicates more Bitcoin is entering the exchange than leaving.
Typically, high net inflows can be bearish for Bitcoin, as they often signal that investors are preparing to sell. Conversely, negative netflow would suggest withdrawals, which are generally considered bullish as it implies that investors are holding onto their coins.
The data shows that despite a recent drop in Bitcoin’s price, Binance has experienced consistent positive net inflows. This trend has persisted even as the price decline seemed to stabilize, with inflow spikes suggesting continued deposits by large holders, potentially signaling a forthcoming sell-off.
Bitcoin has seen some recovery since these large inflows began, indicating that the whales may not have yet started selling. It remains uncertain whether these deposits will result in further price declines or if they serve a different purpose.
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