On-chain data shows that shortly after crypto exchange Binance observed Bitcoin inflow of around 12k BTC, price fell by almost 5%.
Huge Bitcoin Inflow To Binance
As pointed out by a CryptoQuant post, inflow of around 12k BTC was seen on Binance, the largest crypto exchange by market volume.
The Bitcoin inflow is an indicator that shows the total amount of BTC transferred to a crypto exchange from a personal wallet.
As investors usually send their crypto to exchange wallets for cashing out, altcoin purchasing, etc., the indicator’s value going up would imply there is some selling pressure in the market.
A strong increase in the inflow metric can have direct effects on the price, which usually shows as a drop just a few hours later.
Related Reading | Fear And Greed: Sentiment Turns Neutral As Bitcoin Stagnates, What To Do?
Now, here is a chart that shows the trend in the value of the BTC inflow for Binance:
The BTC inflow for Binance shot up earlier today | Source: CryptoQuant
As the above graph shows, there was a sharp spike in the Bitcoin inflow for the crypto exchange Binance. This inflow’s value was around 12k BTC, worth around $470.6 million at the current rate.
The chart also displays the curve for BTC’s price. It looks like just a few hours after this spike occurred, the crypto dropped in value by about 5%.
Related Reading | How A Hammer & The Golden Ratio Could Mean 6 More Months Of Bullish Bitcoin
And it makes sense as movement of 12k BTC is quite significant, and a spike like this might mean there is some short-term selling pressure in the market.
While this inflow was quite significant, another indicator, the Bitcoin all exchanges netflow, shows that there was outflow of about 19k BTC from all exchanges. This more than makes up for the inflow to Binance, hence the exchange reserve overall still looks to be down.
After plummeting, the Bitcoin exchange reserve continues to be down | Source: CryptoQuant
At the time of writing, Bitcoin’s price floats around $k, down % in the last 7 days. Over the past month, the cryptocurrency has amassed % in gains.
Below is a chart that shows the trend in the price of the coin over the last 6 months.
BTC’s price zig-zags below the $40k resistance level | Source: BTCUSD on TradingView
After enjoying a refreshing period of prolonged uptrend, Bitcoin’s price fell down after peaking at $42k. Now, it seems to be range bound below the $40k mark as the coin can’t seem to break it again.
It’s unclear where the price will head from here. It could either continue to be stuck in this range bound environment below the $40k level, or perhaps it will have a breakthrough soon, and a bull run will ensue as hinted by the Bitcoin bullish crossover.