Bitcoin price has faced overwhelming bearish pressure over the past week, but it appears that is the case this bearish narrative has been building for much longer than was evident from BTC’s previous price action. According to a recent on-chain analysis, Bitcoin price has been under selling pressure for over a week on the largest cryptocurrency exchange.
Binance Bitcoin Inflow Signals Selling Pressure for 48 Consecutive Days
In a recent QuickTake post on CryptoQuant, a pseudonymous on-chain analyst, Crazzyblockk, says revealed an ongoing series of Bitcoin sales on Binance, the world’s largest crypto exchange by trading volume. The relevant indicator referenced in the message was the metric “BTC Exchange Net Flow Indicator (IE-Adjusted, 7D MA)”.
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The on-chain metric tracks the seven-day average net amount of Bitcoin entering or leaving Binance, excluding internal wallet transfers. So it indicates whether users mainly deposit BTC (selling pressure) or withdraw BTC (accumulation).
According to Crazzyblockk, the wave of bearish pressure that has lasted on Binance for the past 48 days started on April 19 with mild selling. However, on May 28, the metric’s readings escalated into an area indicating strong selling pressure for Bitcoin, and have remained so ever since.
Crazzyblock highlighted that during this 48-day period, Binance reserves increased from 619,529 to 659,488 BTC, which represents a growth of approximately 39,958 BTC. In particular, the crypto analyst pointed out that the highest level of selling pressure occurred on June 2, as reflected in the peak of daily adjusted net inflows of +8,791 BTC and the increase in the seven-day moving average to +0.844.
Binance Bear Pressure is not caused by whales
In an interesting turn of events, Crazzyblockk highlighted that both Bitcoin selling pressure on Binance and the 7-day moving average have declined from their recent highs. “By June 5, daily adjusted inflows had fallen 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 were responsible for an average of 46.76% of Binance’s inflows, with a range of 34.96% to 65.95%. This, the on-chain analyst explained, is not typical of institutional distribution events. As such, the crypto expert concluded that Binance’s inflows are unlikely to be driven primarily by BTC’s major players.
Crazzyblockk pointed out that there was recently an accumulation signal (seen on March 14), which preceded the 48-day selling streak that played out. As both the 7D MA and daily flows start to decline, the market is in an uncertain phase.
It remains to be seen whether this simultaneous drop in selling pressure is a real turnaround or just a temporary break in broader distribution. Crazzyblockk concluded that the answer, and perhaps BTC’s next direction, lies in the next sessions on Binance. At the time of writing, the Bitcoin price is around $61,073, down 0.9% over the past day.
Featured image from iStock, chart from TradingView