The price of Bitcoin has continued to approach the $75,000 mark in recent weeks, with the premier cryptocurrency showing some form of resurgence in the past few days. An analyst has laid out the “real reason” behind BTC’s latest attempt to break the $74,000 mark.
$55M Of BTC Flow Out Of Binance Daily
In a new Quicktake post on the CryptoQuant platform, crypto pundit Burak Kesmeci put forward the “real reason” why the Bitcoin price jumped from around $65,000 to its latest high above $74,000. The market analyst revealed that the movement of significant Bitcoin amounts out of Binance, the world’s largest cryptocurrency exchange by trading volume, has played a major role in the recent bullish momentum.
Highlighting CryptoQuant’s data, Kesmeci shared that the 30-day simple moving average (SMA30) of the Bitcoin Exchange Outflow metric (for Binance) has been on a steady decline in the past few weeks. This indicator’s contraction suggests the outflow of significant Bitcoin amounts from the world’s largest exchange in recent weeks.
Kesmeci clarified in his post:
Looking at daily netflow data alone can be misleading. That’s why I follow the SMA30 — it gives a far more reliable read.
Data from CryptoQuant and the falling Bitcoin Netflow SMA30 indicate that, on average, $55 million in BTC (at an average price of $70,000) has been leaving Binance over the past few weeks. According to Kesmeci, a daily exchange outflow of this magnitude is “clear evidence of growing demand.”
Source: CryptoQuant
Typically, significant movement of coins from centralized exchanges is often a signal of increasing confidence in the cryptocurrency’s long-term promise, as investors tend to move their assets to non-custodial wallets for long-term storage. Moreover, this trend could also suggest fresh accumulation and buying from investors.
As Kesmeci pointed out, the BTC price surge of more than 13% from $65,000 to $74,000 coincided with the period when the Binance BTC Netflow SMA30 fell and remained below zero. This somewhat optimistic price performance has come despite the uncertain global market conditions stemming from the ongoing military conflict in the Middle East.
Kesmeci added:
As of March 20, U.S. equity markets are bleeding — yet Bitcoin is holding strong. The demand sitting behind Binance’s netflow data explains why.
Bitcoin Price Overview
As of this writing, Bitcoin is valued at around $70,620, reflecting a 0.4% price jump in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from DALL-E, chart from TradingView
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