Recent on-chain developments reveal that data from exchange netflows, particularly from Binance, alongside the notable accumulation by long-term holders (LTHs), present a bullish outlook for the digital asset.
Binance Sees Substantial Bitcoin Outflows Since June 6th:
* The first chart, provides crucial insights into the supply dynamics on one of the world's largest cryptocurrency exchanges. A striking observation is the substantial outflow of Bitcoin from Binance since June 6th. The red bars, representing net outflows, show a consistent trend of more than 7,000 BTC being withdrawn from the platform over this period.
* It suggests that investors are moving their Bitcoin off exchanges into cold storage, indicating a preference for holding rather than selling. This reduces the immediate sell-side pressure on the market, as fewer coins are readily available for trading.
Long-Term Holders Accumulate, Surpassing 600,000 Mark:
* For the first time since September 2024, the Long-Term Holder (LTH) Position Change metric has broken above the 600,000 mark, reflecting aggressive accumulation by investors with a multi-year horizon. Long-term holders are typically the most resilient during market volatility, and their growing dominance suggests strong conviction in Bitcoin’s future appreciation.
* Meanwhile, Short-Term Holder (STH) Position Change remains subdued, further reducing the risk of a sharp correction. STHs are more likely to sell during price swings, but their inactivity implies fewer weak hands in the market.
Conclusion: Bitcoin’s Uptrend Likely to Continue
The confluence of over 7,000 BTC withdrawn from Binance, alongside record-breaking LTH accumulation, presents a compelling case for Bitcoin’s bullish continuation. With reduced sell-side pressure, high conviction from long-term holders, and the ongoing support from institutional flows, the technical and on-chain backdrop points towards further upside.
Written by Amr Taha
