On-chain data shows that Bitcoin netflow on Binance has recently turned negative. Here’s what this could mean for property prices.
14-day SMA Bitcoin Binance Netflow has recently fallen
In a CryptoQuant Quicktake postAn analyst has discussed the trend in Bitcoin exchange Netflow’s 14-day simple moving average (SMA). binance Platform.
“Exchange Netflow” here refers to an indicator that keeps track of the total amount of cryptocurrency that is entering or leaving a wallet associated with a given centralized exchange.
When the value of this metric is positive, it means that investors are depositing the total number of coins on these platforms. As one of the main reasons for transferring holders to exchanges is for selling-related purposes, this type of trend can lead to a bearish result for the asset.
On the other hand, the indicator being negative means that there are more outflows than inflows on the exchange. Such a trend may be an indication that investors are to collectWhich could be bullish for the coin price.
Now, here is a chart that shows the trend in Bitcoin exchange Netflow Binance as well as its 14-day SMA over the past few months:
The value of the metric appears to have seen a sharp negative spike recently | Source: CryptoQuant
As demonstrated in the graph above, Bitcoin exchange Netflow for Binance has seen a sharp negative spike over the past day, which means investors have withdrawn a large number of tokens from the platform.
During the second half of the last month, the indicator remained mostly within the positive territory, resulting in the 14-day SMA gaining a value above zero.
In the chart, Quant highlights examples of the 14-day SMA showing this trend over the past few months. It appears that the pattern generally leads to a short-term decline for the asset in this period. The latest influx into the platform, too, was accompanied by a drop in the price of Bitcoin.
After the latest sharp negative spike was revealed in the daily version of Binance Exchange Netflow, however, its 14-day SMA value has also moved back into the red zone.
While a rise into positive territory is preceded by a short-term decline for an asset, a dip into negative territory usually results in faster price action. Thus, Bitcoin can currently be well set as this indicator.
In total, users of the exchange took a net amount of 5,407 BTC into self-custody during the latest negative spike in Binance Exchange netflow.
BTC price
Bitcoin retraced its latest recovery over the past 24 hours as its price slipped below the $98,000 level.
Looks like the price of the coin has already shed its gains from yesterday | Source: BTCUSDT on TradingView
Dall-E, featured image from CryptoQuant.com, chart from TradingView.com
