šØ Bitcoin Pullback Underway ā Whale Activity Signals Caution
Bitcoin briefly hit a record high of \$124,000 today before dropping below \$120,000. Currently, BTC trades at \$118,336, down 1.9% for the week and 4.5% from its peak.
On-chain data has caught market watchersā attention. CryptoOnchain, a CryptoQuant contributor, notes that all Bitcoin exchange whale ratios have risen above 0.50, a level often linked to higher short-term volatility.
Large BTC inflows to exchanges by whales can signal potential market moves. Yet, aggregate exchange data shows negative net flowsāmore BTC is leaving than arrivingāoften signaling accumulation phases.
Historically, high whale ratios and large inflows to a single exchange have preceded sharp sell-offs or leveraged short squeezes, depending on whether the activity is spot selling or derivatives trading.
Amr Taha of CryptoQuant highlighted that Binanceās BTC spot volume spiked to \$7B in a single day, likely reflecting trader adjustments due to institutional moves or macroeconomic factors. Short-term holder inflows on Binance also exceed the 0.4 Spent Output Age Bands threshold, suggesting retail-driven selling, which often provides liquidity for more experienced traders.
Whales Keep Selling Pressure Low
Despite retail activity, whales (1,000ā10,000 BTC) and humpbacks remain largely inactive. Whale inflows totaled 1,170 BTC, far below 14,610 BTC seen on July 19 during a price drop.
Although derivatives and macro factors still influence the market, the limited large-scale selling reduces immediate downside risk.
With Bitcoin just below \$120,000, the coming days will be crucial in determining whether the market stabilizes or faces further correction.
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