On-chain analysis shows huge Bitcoin outflows from crypto exchange Binance. BTC might keep the rally up and break $40k.
Huge Bitcoin Outflows On Binance
As pointed out by a CryptoQuant post, the crypto exchange has observed huge outflows of BTC on Monday.
The Binance Outflows indicator shows the amount of Bitcoin transferred from the Binance exchange wallets to personal or other exchange wallets.
On the other hand, the inflows show how many BTC were sent into Binance wallets from other types of wallets.
The indicator of most interest here is the the Binance Bitcoin netflow, which is just the inflow minus the outflow.
Binance BTC netflow = Inflow – Outflow
Here is a chart for the Binance Bitcoin netflow that shows the trend in the value of the indicator over the past couple of weeks:
BTC netflow on Binance shows deep negative for 26 July | Source: CryptoQuant
As the above graph shows, the crypto exchange is showing two huge outflows right now. One of them was more than 10k BTC, while the other one was around a whopping 31k BTC!
There also seems to be an inflow of about 10k, similar to the value of one of the outflows. A look at http://chain.info shows that, yes, this inflow and outflow is actually the same transaction between Binance internal wallets.
The 31k BTC outflow, however, isn’t part of any internal transaction. Usually negative netflows mean there isn’t much selling pressure in the market. Hugely negative netflows, like this one, can make the price go up.
At the time of writing, Bitcoin’s price is floating around $37k, up 26% in the last 7 days. The increase compared to last month is about 14%.
Here is a chart showing the trend in the price of the crypto:
BTC's price suddenly surges up | Source: BTCUSD on TradingView
Bitcoin has finally broken through the $35k resistance level. Earlier, the crypto was stuck in the $30k to $35k range-bound market for quite some while as its market volatility reached yearly lows.
Now, however, the rumors regarding Amazon opening up to BTC and crypto payments has helped drive up the coin’s price.
It’s looking likely that the price of BTC will continue to rise to $40k. Though, it remains to be seen if the digital currency can break past that level.
The Bitcoin rise could very well stop after hitting the $40k resistance level, and the market could become range-bound below this level. Or perhaps it will carry the bullish momentum and break past the range to continue further beyond.