Bitcoin Sell Pressure on Binance Persists for Over 48 Days

A new on-chain analysis has shed light on the prolonged sell pressure faced by Bitcoin on Binance, the largest cryptocurrency exchange by trading volume.

According to the analysis, which tracks the net flow of Bitcoin entering or leaving Binance, a stream of bearish pressure has been building up since April 19. The indicator, known as the 'BTC Exchange Net Flow Indicator (IE-Adjusted, 7D MA)', shows that users have been predominantly depositing BTC over withdrawing it, indicating strong sell pressure.

The analysis reveals that Binance reserves have increased by approximately 39,958 BTC over the past 48 days, with June 2 seeing the highest level of sell pressure. Notably, both the daily adjusted net inflow and the 7-day moving average have declined from their recent summits, suggesting a possible reversal in the market.

Interestingly, the analysis suggests that institutional players are not primarily driving the selling pressure on Binance. The average participation of Bitcoin's whales during this period was around 46.76%, which is not typical of institutional distribution events.