Binance Whale Selling Pressure Eases, Could This be a Turning Point for Bitcoin?
The Bitcoin market is showing signs of a potential turning point, as whale selling pressure on Binance eases. The Bitcoin exchange whale ratio, which measures the proportion of top 10 inflows to total inflows, is currently declining.
Binance, the Bitcoin exchange whale ratio, which measures the proportion of top 10 inflows to total inflows, is currently declining. Monitoring whale behavior on Binance, the exchange handling the highest volumes provides valuable insights into potential market movements.
This development is encouraging, especially considering Bitcoin’s dramatic decline of almost 30% from its all-time high in January. The current price point of around $80,000 seems to be a favorable entry point for institutional investors, with large holders purchasing almost 65,000 BTC in the last 30 days.
In addition, elevated whale ratio values typically indicate higher selling pressure. It also, indicates that a decreasing ratio has historically preceded bullish trends if this trend continues, it could signal the end of the current correction and a potential market rebound.
Binance Whale Ratio Market Effect
After weeks of decline, Bitcoin is experiencing a gradual resurgence of buyer interest, driven primarily by large-volume investors. The current price point of $81,983, which is around $80,000, is proving attractive for these major players, or at the very least, discouraging sellers from exiting the market.
According to CryptoQuant contributor Darkfost, a recent analysis of Binance’s Bitcoin exchange whale ratio reveals a notable decline in whale activity. This trend was observed since mid-January when Bitcoin reached its latest all-time highs. This indicates a potential shift in market dynamics. As Binance handles the highest volumes, this decline in whale dominance may indicate a broader change in investor behavior.
Notably, data also shows that whales and larger entities holding at least 10 BTC have started accumulating coins this month, albeit at moderate rates, further fueling hopes of a potential market upswing. According to Glassnode’s latest “The Week Onchain” newsletter, prospective Bitcoin buyers are showing caution at the current price point of $80,000
The analytics firm notes that overall appetite for BTC exposure remains subdued, with lackluster demand evident in capital flows by short-term holders (STHs). Moreover, a key indicator of this hesitation is the cost basis of short-term holders (STHs), which reveals that buyers holding coins for shorter periods (1 week month) now have a lower cost basis than those holding for longer periods (1-3 months).
