Bitcoin prices appeared to have resumed their bull run on Thursday, August 14th, as they ran to the highest ever. However, this positive momentum was short-lived.
Bitcoin prices hovered around $118,000 and around 118,000 levels for most of Saturday, August 16th, and are struggling to rekindle this bullish run over the weekend. Latest on-chain data suggests that this price slump could last for the coming weeks.
As sales pressure continues, Bindcoin net flow for Bindance becomes positive
In a post on the Quick Take for the Cryptoquant platform, Pseudonymous on-chain analyst Borisvest revealed that Bitcoin prices could experience sales pressure in the next 1-2 weeks. This projection is based on the flow of coins against Binance, the world’s largest cryptocurrency exchange by trading volume.
Related readings
Related metrics here include Bitcoin Netflow and Exchange Reserve metrics. Both measure the amount of coins that enter or leave the cryptocurrency exchange. According to Cryptoquant data, Bitcoin Netflow has tested positive, but leaks in Binance exchanges are declining.
Borisvest said this trend suggests that Bitcoin is in the distribution stage. Analysts explained that this could have played a role in the short-lived momentum that Bitcoin prices are facing at the best ever.
Borisvest pointed out that as Bitcoin prices skyrocketed to an all-time high, replacement reserves continued to increase, indicating investors were sold for sale for commercial purposes. “The missing components were buyers. Prices peaked, demand began and sales pressure accelerated,” added an analyst on the chain.
Furthermore, Borisvest emphasized that the price gap in the permanent spot indicates the presence of aggressive buyers, creating an ideal environment for distribution. According to online experts, Binance Shloals has had the opportunity for buyers to sell in their locations.
Borisvest said Binance’s critical trading volume plays a key role in why and how exchange activities affect the crypto market. So, as new buyers enter, the Binan Skudhira will offload.
While there is a wider upward trend in the on-chain, we concluded that Bitcoin prices are likely to continue to experience sales pressure over the next 1-2 weeks.
Bitcoin price at a glance
At the time of writing, BTC is valued at around $117,490, reflecting a price increase of almost 1% over the past 24 hours.
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ISTOCK featured images, TradingView chart
