Bitcoin Outflows On Binance Suggest Growing Accumulation–Bullish Momentum Ahead?
Bitcoin Outflows On Binance Suggest Growing Accumulation–Bullish Momentum Ahead? After weeks of fluctuating performance, Bitcoin is once again in the spotlight as on-chain data highlights critical trends emerging from Binance, the world’s largest cryptocurrency exchange. The latest insight reveals that there has been an interesting move in Binance’s Netflow Simple Moving Average (SMA14), a key indicator often associated with shifts in Bitcoin’s short-term price direction. Historically, this metric has provided reliable signals regarding the platform’s investor sentiment and accumulation behavior. Binance Netflow Data Signals Accumulation Phase A recent analysis by a CryptoQuant analyst, Burak Kesmeci, sheds light on Binance’s Netflow data from the past 90 days. According to Kesmeci, whenever the Netflow SMA14 moves into positive territory, Bitcoin tends to face 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 bullish trend. On January 6, 2025, Binance’s Netflow metrics revealed some notable insights. The Netflow on Binance recorded a value of -5,407 BTC, while the 14-day Simple Moving Average (SMA14) for Netflow stood at -483 BTC. Bitcoin Exchange Netflow. | Source: CryptoQuantThese negative readings indicate that more Bitcoin is leaving the exchange than entering it, a behavior commonly associated with investor accumulation. Binance Netflow SMA14 Turns Negative “Both metrics confirm that investor behavior on Binance is leaning toward accumulation. This trend strongly supports the case for upward movement in Bitcoin’s price over 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 acted as early indicators of potential upward price movement, as reduced Bitcoin availability on exchanges reduces immediate selling pressure. When Bitcoin holders move their assets off exchanges, it usually signals their intent to hold long-term rather than sell. This pattern of behavior contributes to a supply squeeze scenario, where lower liquidity on trading platforms creates upward price pressure. The fact that Binance is the largest cryptocurrency exchange by trading volume gives this indication more credibility as the platform often serves as a barometer for broader market sentiment. Kesmeci concluded: In summary, both metrics confirm that investor behavior on Binance is leaning toward accumulation. This trend strongly supports the case for upward movement in Bitcoin’s price over 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% uptick. However, the asset has since retreated, erasing most of those gains and stabilizing just above the $100,000 threshold. At the time of writing, Bitcoin is priced at $100,630, reflecting a modest 1.3% increase over the past day. Despite this slight uptick, the asset remains approximately 7% below its all-time high of $108,135, recorded last month. BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingViewFeatured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.