The Bitcoin price faced overwhelming bearish pressure this past week, but it appears that this bearish story has been building up for much longer than was apparent in BTC’s previous price action. According to a recent on-chain analysis, the Bitcoin price has been under sell pressure on the largest cryptocurrency exchange for more than a week.
Binance Bitcoin Inflows Signal Sell Pressure For 48 Consecutive Days
In a recent QuickTake post on CryptoQuant, a pseudonymous on-chain analyst, Crazzyblockk, revealed an ongoing streak of Bitcoin selling on Binance, the world’s leading crypto exchange by trading volume. The relevant indicator referenced in the post was the “BTC Exchange Net Flow Indicator (IE-Adjusted, 7D MA)” metric.
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The on-chain metric tracks the 7-day average net amount of Bitcoin entering or leaving Binance, excluding internal wallet transfers. It, thus, indicates whether users are predominantly depositing BTC (sell pressure) or withdrawing BTC (accumulation).
According to Crazzyblockk, the stream of bearish pressure that has lasted the past 48 days on Binance began as mild selling on April 19. On May 28, however, readings from the metric escalated into territory that connotes strong sell pressure for Bitcoin, and has remained the case since.
Crazzyblock highlighted that during this 48-day period, Binance reserves have risen from 619,529 to 659,488 BTC, representing approximately 39,958 BTC in growth. Notably, the crypto analyst pointed out that June 2 saw the highest level of sell pressure, as reflected in the daily adjusted net inflow’s peak of +8,791 BTC and the 7-day moving average’s rise to +0.844.
Binance Bear Pressure Not Whale-Driven
In an interesting turn of events, Crazzyblockk highlighted that both the Bitcoin sell pressure on Binance and the 7-day Moving Average have declined from their recent summits. “By June 5, the daily adjusted inflow had pulled back to +1,679 BTC and the 7D MA had compressed to +0.691,” the analyst noted
Also worth noting is the average participation of Bitcoin’s whales during this 48-day bear period. As Crazzyblockk stated, whales accounted for an average of 46.76% of Binance inflows, with a range of 34.96% to 65.95%. This, explained the on-chain analyst, is not typical of institutional distribution events. As such, the crypto pundit concluded that Binance inflows are unlikely to be primarily driven by BTC’s large players.
Crazzyblockk pointed out that there was recently an accumulation signal (seen on March 14), which preceded the 48-day sell streak that played out. Given that both the 7D MA and daily flows have begun to decline, the market is in an uncertain phase.
It remains to be seen whether this concurrent decline in selling pressure is a genuine reversal or merely a temporary break in the broader distribution. Crazzyblockk concluded that the answer, and perhaps BTC’s next direction, lies in the next several sessions on Binance. As of this writing, the Bitcoin price stands at around $61,073, down 0.9% over the past day.
Featured image from iStock, chart from TradingView