Binance Bitcoin Outflows and MVRV Ratio Point to Sustained Bullish Setup, Analyst Reveals

Source Newsbtc

Bitcoin (BTC) has seen a slight retreat after reaching an intraday high of $106,704. At the time of writing, the asset trades at $104,686, reflecting a mere 0.4% increase in the last 24 hours. Despite this slight pullback, BTC remains within 3.8% of its all-time high of $109,000 set in January, indicating that bullish momentum is still largely intact.

Amid this price performance, data suggests that BTC’s price behavior remains supported by strategic accumulation patterns rather than short-term speculation. The return of large-scale withdrawals from centralized exchanges like Binance and Kraken may be contributing to this reduced sell-side pressure.

Exchange Outflows and MVRV Ratio Support Accumulation Thesis

Amr Taha, a contributor to CryptoQuant’s QuickTake platform, highlighted a noteworthy shift in investor behavior. According to Taha’s latest analysis, over 3,090 BTC, valued at approximately $325 million, were withdrawn from Binance in a single day. This followed an earlier 76,000 ETH withdrawal from Binance and a separate 170,000 ETH exit from Kraken.

Binance exchange netflow.

These movements suggest investors are increasingly transferring assets off exchanges, a behavior typically linked to long-term holding strategies. Taha notes that this trend aligns with broader developments in the industry, such as Circle’s reported IPO plans and acquisition discussions involving Coinbase and Ripple.

Taha’s analysis also emphasizes the importance of the MVRV (Market Value to Realized Value) ratio in gauging market sentiment. Currently standing at 2.33, the MVRV remains below the 2.75 threshold that has historically triggered major corrections.

Bitcoin MVRV ratio.

The last instance of MVRV crossing that level coincided with a prolonged five-month downturn. In contrast, the current level suggests that Bitcoin is not yet in overheated territory, which could give the market room to move higher before heavy profit-taking begins.

Bitcoin Market Structure Points to Reduced Sell Pressure

Taha concludes that the market remains in an accumulation phase, driven by reduced exchange reserves and a neutral MVRV reading. The decline in exchange-held BTC supply lowers the risk of large-scale sell-offs, especially if buyer demand holds steady. This dynamic could help sustain the current uptrend, barring unexpected external shocks.

Moreover, the combination of falling exchange balances and a sub-critical MVRV ratio paints a picture of a market not yet near euphoric excess. Instead, the conditions suggest a cautious optimism among investors, with many choosing to store rather than liquidate their holdings, according to Taha.

The analyst added that the gradual offloading of exchange balances supports the view that institutional and large retail participants are still positioning for future upside. Should the MVRV ratio climb toward the historical trigger point of 2.75, that sentiment may begin to shift, but for now, on-chain indicators suggest that Bitcoin’s rally may still have room to grow.

Bitcoin (BTC) price chart on TradingView

Featured image created with DALL-E, Chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
placeholder
Japan’s 40-year bond yield hits 20-year high. The entire world should be very worriedJapan’s bond market just fired a warning shot at the global economy. The country’s 40-year government bond yield surged to 3.445% on Monday, the highest it’s been in two decades.
Author  Cryptopolitan
May 19, Mon
Japan’s bond market just fired a warning shot at the global economy. The country’s 40-year government bond yield surged to 3.445% on Monday, the highest it’s been in two decades.
goTop
quote