[Analysis] "Increasing inflows of Bitcoin and Ethereum at Binance… Sell pressure signal"

The world’s largest cryptocurrency exchange Binance's Bitcoin (BTC) and Ethereum (ETH) have recently shown an increasing trend.

TeddyVision, a CryptoQuant contributor, said on the 28th (local time) through CryptoQuant that "the 7-day cumulative 'Exchange Inflow Value' on Binance has moved to a range that is markedly higher than this year's average." TeddyVision said, "The 'average' range of Exchange Inflow Value was formed around 8 billion dollars for most of this year," and "since August, even in short-term correction phases, the flow has not fallen below 11 billion dollars."

TeddyVision emphasized, "This means that the flow of funds into Binance has been steadily maintained at a pace that greatly exceeds the annual average." TeddyVision added, "This cannot be immediately concluded as strong selling pressure," while analyzing that "it can be interpreted as a signal that the amount of funds and coins moving to exchanges is increasing, structurally increasing the market's sell-side liquidity."

TeddyVision diagnosed, "Such structurally high inflows are a feature that often occurs in cyclical phases rather than in pure accumulation stages." He said, "If large investors move coins to exchanges and the market shifts to a 'Risk-Off (avoidance of risky assets)' environment, it can act to secure greater selling capacity."