On-chain data shows the Bitcoin reserve on Binance has been sharply going up in the last couple of days, something that could be a sign of dumping.<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, the funding rates have been negative while these inflows have been made.<\/p>\n The \u201cexchange reserve<\/a>\u201d is an indicator that measures the total amount of Bitcoin currently stored in the wallets of a centralized exchange (which, in this case, is Binance).<\/p>\n When the value of this metric goes up, it means investors are depositing their coins to the exchange right now. As investors could be depositing to such a platform for selling purposes, this kind of trend can have bearish impacts on the price of the crypto.<\/p>\n On the other hand, decreasing value of the reserve suggests coins are exiting the exchange currently. Such a trend, when sustained, can be a sign of accumulation from investors, and could thus be bullish for the BTC value.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin exchange reserve for the crypto exchange Binance<\/a> during the past month:<\/p>\n\n The value of the metric seems to have been riding an upwards momentum in recent days | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Binance Bitcoin exchange reserve started to rapidly fall down around ten days ago as the crash started.<\/p>\n This happened because the collapse of FTX<\/a> made investors more wary of crypto exchanges than ever before, and so they were withdrawing coins off centralized platforms in hordes.<\/p>\n After seeing a final sharp plunge a little less than a week ago, the indicator started moving sideways. In the past couple of days, however, this trend has changed.<\/p>\n The Binance Bitcoin exchange reserves are now climbing back up quickly, suggesting that investors have been depositing large amounts.<\/p>\n This could be a sign of activity from whales, and would imply that these humongous holders may be preparing to dump.<\/p>\n The quant has also talked about another indicator\u2019s trend, the \u201cFunding Rate<\/a>,\u201d which tells us whether the futures market is leaning towards shorts or longs right now. The below chart displays the trend in this metric.<\/p>\n\n Looks like the metric has a red value currently | Source: CryptoQuant<\/a><\/p>\n The funding rates are highly negative at the moment, implying the majority of the contracts are shorts. Based on this the analyst thinks a short squeeze could possibly take place, which would propel the price in the short term.<\/p>\n However, the quant also believes that\u2019s when the whales would potentially make their move, and dump the crypto.<\/p>\n At the time of writing, Bitcoin\u2019s price floats around $16.5k, down 6% in the last week.<\/p>\n\n BTC continues to consolidate | Source: BTCUSD on TradingView<\/a> <\/p>\n On-chain data shows the Bitcoin reserve on Binance has been sharply going up in the last couple of days, something that could be a sign of dumping.<\/p>\n As pointed out by an analyst in a CryptoQuant post<\/a>, the funding rates have been negative while these inflows have been made.<\/p>\n The \u201cexchange reserve<\/a>\u201d is an indicator that measures the total amount of Bitcoin currently stored in the wallets of a centralized exchange (which, in this case, is Binance).<\/p>\n When the value of this metric goes up, it means investors are depositing their coins to the exchange right now. As investors could be depositing to such a platform for selling purposes, this kind of trend can have bearish impacts on the price of the crypto.<\/p>\n On the other hand, decreasing value of the reserve suggests coins are exiting the exchange currently. Such a trend, when sustained, can be a sign of accumulation from investors, and could thus be bullish for the BTC value.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin exchange reserve for the crypto exchange Binance<\/a> during the past month:<\/p>\n The value of the metric seems to have been riding an upwards momentum in recent days | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the Binance Bitcoin exchange reserve started to rapidly fall down around ten days ago as the crash started.<\/p>\n This happened because the collapse of FTX<\/a> made investors more wary of crypto exchanges than ever before, and so they were withdrawing coins off centralized platforms in hordes.<\/p>\n After seeing a final sharp plunge a little less than a week ago, the indicator started moving sideways. In the past couple of days, however, this trend has changed.<\/p>\n The Binance Bitcoin exchange reserves are now climbing back up quickly, suggesting that investors have been depositing large amounts.<\/p>\n This could be a sign of activity from whales, and would imply that these humongous holders may be preparing to dump.<\/p>\n The quant has also talked about another indicator\u2019s trend, the \u201cFunding Rate<\/a>,\u201d which tells us whether the futures market is leaning towards shorts or longs right now. The below chart displays the trend in this metric.<\/p>\n Looks like the metric has a red value currently | Source: CryptoQuant<\/a><\/p>\n The funding rates are highly negative at the moment, implying the majority of the contracts are shorts. Based on this the analyst thinks a short squeeze could possibly take place, which would propel the price in the short term.<\/p>\n However, the quant also believes that\u2019s when the whales would potentially make their move, and dump the crypto.<\/p>\n At the time of writing, Bitcoin\u2019s price floats around $16.5k, down 6% in the last week.<\/p>\nBTC Price<\/h2>\n
\nFeatured image from R\u00e9mi Boudousqui\u00e9 on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"Bitcoin Reserve On The Crypto Exchange Binance Has Observed Sharp Growth In Recent Days<\/h2>\n
BTC Price<\/h2>\n