Bitcoin Price Drops 5% As 12k BTC Flow Into Binance
August 05 2021 - 2:00PM
NEWSBTC
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 BTC Price 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.
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