On-chain data shows a net amount of Bitcoin has been flowing into Binance for 10 days now, a potential sign that investors have been looking to sell.
Bitcoin Exchange Netflow Has Remained Positive For Binance Recently
As pointed out by CryptoQuant author Darkfrost in an X post, investors have been depositing their Bitcoin to Binance recently. The on-chain metric of relevance here is the “Exchange Netflow,” which tracks the total amount of $BTC that’s currently moving into or out of the wallets connected to a centralized exchange.
When the value of the metric is positive, it means holders are transferring a net number of tokens to the platform. As one of the main reasons why investors deposit to exchanges is for selling-related purposes, this kind of trend can have a bearish implication for the asset’s price.
On the other hand, the indicator being below the zero mark suggests withdrawals are dominating deposits on the exchange. Such a trend can be a sign that investors are accumulating, which can naturally be bullish for $BTC. Now, here is the chart shared by Darkfrost that shows the trend in the Bitcoin Exchange Netflow for Binance, the largest platform by trading volume, over the past ten days:
As displayed in the above graph, the Binance Bitcoin Exchange Netflow has remained at a positive level throughout this window, implying net inflows have been occurring. The scale of the inflows has varied each day, but there has been an overall surge in the amount of $BTC being deposited to the exchange during the last 10 days.
More specifically, May 16th saw a net 378 $BTC enter Binance-associated wallets, while today the same figure has risen to 1,190 $BTC. This means that inflows have more than tripled over the period. “The largest single day recorded over 3,600 $BTC on May 18th, a relatively high level for a single day that clearly illustrates the intensity of the movement,” noted the analyst.
The sustained deposits have meant that the Exchange Reserve of Binance (that is, the total amount of Bitcoin sitting on the platform) has followed an uptrend recently.
From the chart, it’s apparent that the Bitcoin Exchange Reserve on Binance hit a low of 616,000 $BTC on April 24th. The metric has since surged to 632,000 $BTC, suggesting a net inflow of 16,000 $BTC into the exchange. “When inflows become dominant and consistent on a platform like Binance, this is traditionally interpreted as a potential sell signal,” said Darkfrost.
$BTC Price
At the time of writing, Bitcoin is trading around $77,400, unchanged from one week ago.
