Key Points
- Bitcoin’s retail investors’ deposits on Binance have surged, surpassing whale inflows.
- Despite increased inflow into exchanges, large Bitcoin holders are absorbing the selling pressure.
Bitcoin has seen a 1.18% decline in the past 24 hours.
However, the deposits of retail investors on Binance have surged to 6,000 Bitcoin (BTC), surpassing the inflows from whales.
Shifting Market Dynamics
In the last two weeks, Bitcoin has been trading sideways, stuck within the $98k and $107k range.
CryptoQuant has observed a major shift in the behavior of whales and retail traders.
Retail traders have been outpacing whales in terms of exchange deposits.
Specifically, retail investors on Binance have increased their BTC deposits significantly, indicating fear-driven market conditions.
On the other hand, whale inflows to Binance have declined, suggesting that large holders are keeping their BTC off exchanges for the long term.
This differing sentiment between retailers and whales indicates that while investors are actively selling, whales are selling less.
Implications for Bitcoin
Increased inflow into exchanges generally negatively impacts prices.
However, large holders seem to be absorbing the selling pressure from retailers.
The inflow across exchanges remains relatively low, implying increased accumulation.
This trend is confirmed by a declining Stock-to-Flow Ratio.
The Multiple 463 S/F for Bitcoin has dropped to 0.26, indicating that BTC is trading at 26% of its projected value.
Historically, this level has signaled potential accumulation and has preceded strong upswings.
Despite retail traders selling more than whales, large holders are absorbing the pressure through active accumulation.
With whales actively accumulating, Bitcoin is expected to continue making highs with corrections as retailers sell.
If these conditions persist, Bitcoin could reclaim $105,500 and attempt $107K.
A correction at the current level could see Bitcoin drop to $102,780.