🚨 Bitcoin Pullback Begins — Whale Ratio Suggests Caution Ahead
Bitcoin temporarily reached an all-time high of $124,000 today before retracing below $120,000. As of press time, BTC is trading at $118,336, down 1.9% weekly and 4.5% from its high.
The price change follows on-chain changes that have garnered market observers' attention. CryptoOnchain, a CryptoQuant contributor, reports that all Bitcoin exchange whale ratios have increased over 0.50, a threshold linked with more short-term volatility.
Large holders' BTC inflows to exchanges are frequently an indication of market-moving activity. However, aggregated data across all exchanges indicates negative net flows, indicating more BTC is leaving than arriving, which often coincides with accumulation stages.
High whale ratios and huge inflows to one exchange have historically preceded violent sell-offs and leveraged short squeezes, depending on whether the inflows are for spot selling or derivatives trading.
Amr Taha of CryptoQuant found that Binance's BTC spot trading volume increased to $7 billion in a day. The volume increase may indicate a trader positioning adjustment due to institutional transactions or macroeconomic variables.
Additionally, Binance's short-term holder (STH) inflows have above the 0.4 Spent Output Age Bands barrier, which is consistent with retail-driven sell activity. Retail sellers have historically sold into strength during bull markets, providing liquidity for expert traders.
Whale Behavior Reduces Immediate Selling Pressure
Despite increased retail activity, whales (1,000–10,000 BTC) and humpbacks continue to put in little. Whale inflows are 1,170 BTC, down from 14,610 BTC on July 19, when prices dropped.
Though derivatives positioning and macroeconomic events still affect market conditions, the lack of large-scale selling signals a decrease in immediate negative risk.
Bitcoin is close below $120,000, therefore the next few trading days will determine whether the market stabilizes or corrects.
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