After weeks of volatile performances, Bitcoin is once again in the spotlight as on-chain data from Binance, the world’s largest cryptocurrency exchange, highlights critical trends emerging.
The latest insight shows that there has been an interesting move in Binance’s Netflow Simple Moving Average (SMA14), a key indicator that is often associated with changes in Bitcoin’s short-term price direction.
Historically, this metric has provided reliable signals regarding the platform’s investor sentiment and cumulative behavior.
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Binance Netflow data signal cumulative phase
A fresh one analysis Burak Kesmeci, a CryptoQuant analyst, sheds light on Binance’s Netflow data over the past 90 days. According to Kesmesi, whenever the Netflow SMA14 moves into positive territory, Bitcoin faces short-term selling pressure, leading to temporary corrections.
Conversely, when this indicator turns negative, it suggests a shift in investor sentiment toward accumulation, potentially signaling a short term. Acceleration trend.
On January 6, 2025, Binance’s Netflow metrics revealed some important information. Netflow on Binance recorded a value of -5,407 BTC, while the 14-day simple moving average (SMA14) for Netflow was -483 BTC.
These negative readings indicate that more Bitcoin is leaving the exchange than entering it, a behavior commonly associated with Investors gathered.
Binance Netflow SMA14 turns negative
“Both metrics confirm that investor behavior on Binance is trending toward accumulation. This trend strongly supports the case for an upward move in the price of Bitcoin in the short term.” – by @burak_kesmeci
Link 👇https://t.co/jSkRZ2TjLk pic.twitter.com/Rau37VjBQN
— CryptoQuant.com (@cryptoquant_com) January 7, 2025
Historically, such trends have served as early indicators of potential upward price movement, as the availability of Bitcoin on exchanges decreases. Pressure to sell immediately.
When Bitcoin holders exit their holdings from exchanges, it usually signals their intention to hold for the long term rather than sell. This pattern of behavior contributes to a supply squeeze scenario, where reduced liquidity on trading platforms creates upward price pressure.
The fact that Binance is the largest cryptocurrency exchange by trading volume lends more credibility to this signal as the platform often acts as a barometer. Broad market sentiment. Casemesi concluded:
In summary, both metrics confirm that investor behavior on Binance is trending toward accumulation. This trend strongly supports the case for an upward move in the price of Bitcoin in the short term.
Bitcoin market performance
Bitcoin’s bullish momentum appears to be losing steam, as recent price action shows limited strength to sustain a rally. Just 24 hours ago, Bitcoin was trading above $102,000 after a 4% gain. However, the asset has since retreated, wiping out most of those gains and Stabilizing just above the $100,000 threshold.
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At the time of writing, Bitcoin is valued at $100,630, representing a modest 1.3% increase from the previous day. Despite this modest increase, the asset remains about 7% below its all-time high of $108,135 recorded last month.
Featured image created with DALL-E, chart from TradingView
