On-chain analysis shows that Binance, a cryptocurrency exchange, has a large amount of Bitcoin outflows. BTC may continue to rise and exceed $40,000.
Binance Bitcoin outflows
As CryptoQuant pointed out postal, The cryptocurrency exchange observed a massive outflow of BTC on Monday.
This Binance The outflow indicator shows the amount of Bitcoin transferred from the Binance Exchange wallet to the wallet of an individual or other exchange.
On the other hand, the inflow shows how much BTC is sent to Binance wallet from other types of wallets.
The most interesting metric here is Binance Bitcoin Network traffic, This is just the inflow minus the outflow.
Binance BTC Net Flow = Inflow-Outflow
This is a chart of Binance’s Bitcoin Net Flow, showing the trend of indicator values in the past few weeks:
BTC netflow on Binance shows deep negative for 26 July | Source: CryptoQuant
As shown in the figure above, cryptocurrency exchanges are currently showing two huge outflows of funds. One of them is over 10k BTC, while the other is as high as 31k BTC!
There also seems to be an inflow of about 10k, similar to the value of one of the outflows. Checking http://chain.info shows that, yes, this inflow and outflow are actually the same transaction between Binance’s internal wallets.
However, the outflow of 31k BTC is not part of any internal transaction. Usually negative net flow means that there is not much selling pressure in the market. Such huge negative net flows can increase prices.
At the time of writing, Bitcoin price The stock price fluctuates around US$39,000 and has risen by 26% in the past 7 days. Compared with the previous month, the increase was about 22%.
This is a chart showing the trend of crypto prices:
BTC's price suddenly surges up | Source: BTCUSD on TradingView
Bitcoin finally broke through the $35,000 resistance level. Earlier, as market volatility reached an annual low, cryptocurrencies fell into a range of US$30,000 to US$35,000 for a long period of time.
However, now rumors about Amazon opening up to BTC and encrypted payments have pushed cointhe price of.
The price of BTC is likely to continue to rise to $40,000. However, whether digital currencies can break through this level remains to be seen.
After hitting the resistance level of $40,000, Bitcoin’s rise is likely to stop, and the market may fluctuate in the range below this level. Or it may continue the bullish momentum and break out of the range to continue to go beyond.