The price of Bitcoin has continued to approach $75,000 in recent weeks, and the top cryptocurrency has seen some form of resurgence over the past few days. One analyst has revealed the “real reason” behind BTC’s recent attempt to break $74,000.
$55 million BTC leaked from Binance every day
In a new Quicktake post on the CryptoQuant platform, cryptocurrency expert Burak Kesmeci writes: put forward The “real reason” the price of Bitcoin skyrocketed from around $65,000 to recent highs of over $74,000. Market analysts say the movement of significant Bitcoin amounts on Binance, the world’s largest cryptocurrency exchange by trading volume, has played a significant role in its recent bullish momentum.
Highlighting data from CryptoQuant, Kesmeci shared that the 30-day simple moving average (SMA30) of the Bitcoin exchange outflow indicator (for Binance) has been steadily declining over the past few weeks. The contraction in this indicator suggests that significant amounts of Bitcoin have been flowing out of the world’s largest exchanges in recent weeks.
Kesmeci stated in his post:
Looking only at daily netflow data can be misleading. This is why I follow SMA30. SMA30 provides much more stable readings.
According to data from CryptoQuant and the falling Bitcoin Netflow SMA30, an average of $55 million worth of BTC (at an average price of $70,000) has left Binance over the past few weeks. According to Kesmeci, daily exchange outflows of this magnitude are “clear evidence of increased demand.”
Source: CryptoQuant
Typically, large movements of coins on centralized exchanges are often a sign of growing confidence in the long-term promise of cryptocurrencies, as investors tend to move their assets into non-custodial wallets for long-term storage. Moreover, this trend may signal new accumulation and buying by investors.
As Kesmeci pointed out, the over 13% surge in BTC price from $65,000 to $74,000 coincided with a period in which the Binance BTC Netflow SMA30 fell and remained below zero. This somewhat optimistic price performance comes despite uncertain global market conditions due to the ongoing military conflict in the Middle East.
Kesmeci added:
As of March 20, the US stock market is bleeding, but Bitcoin remains strong. The demand behind Binance’s netflow data explains why.
Bitcoin Price Overview
At the time of this writing, the value of Bitcoin is approximately $70,620, reflecting a 0.4% price increase over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image of DALL-E, chart by TradingView
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